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Update: 08-26-24

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Risk On-Fed Pivot!     Issachar Update: Issachar is fully invested in a diverse group of higher-trending stocks with accelerating earnings and sales. We also have an increasing position (~14%) in gold and gold stocks as inflation erodes our purchasing power. Gold has served as a store of value and inflation hedge against more fiat money printing. Global central banks have been buying more gold, not Bitcoins, as tangible assets appreciate with inflation. Our trust in government and fiat currencies has declined while hard assets have provided a haven. Gold is trending at an all-time high and could be used as insurance against a declining dollar. The higher trending rally in junk bonds confirms this is a “risk-on” environment where dips could be used as buying opportunities. If the market expects rates to fall, the dollar will likely decline, and gold could add a little shine to our bottom line. (There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.)

Market Update: The Fed confirmed Friday what the market already knew: recent economic data supports a rate cut on September 18th, and the market rallied on greater volume. The dollar index dropped about 1%, 10-year Treasury yields fell over 1% to a strong level of support, and gold rallied to an all-time high of over $2,500/oz. The Bureau of Labor Statistics announced its highest downside revision since the 2008 Financial Crisis. They revised 12-month nonfarm payrolls down by 818,000 jobs, meaning the monthly celebrated job creations were a miss. Instead of creating an average of 242,000 jobs every month for the last 12 months, only 174,000 jobs were created, most of which were government jobs. The Fed has pivoted from fighting inflation to fighting unemployment, which is on the rise. If the Fed is “data dependent,” how can it depend on data in real-time when it is drastically revised later?

The main reason inflation decreased from 9% to 3% was that the dollar index rallied over 27% from May 2021 to September 2022. That dollar strength brought commodity prices and the CPI down because most commodities, like oil and orange juice, are priced in dollars. The dollar rallied because the Fed was fighting (raising rates) the inflation it helped create. Higher relative interest rates attract foreign capital, and they convert their currencies into dollars to buy our higher-yielding Treasury bonds. However, the dollar index is in a downtrend, losing about 4% since June, so while a strong dollar brought the CPI down, a weak dollar will push commodity prices higher. If the Fed continues to lower rates, the dollar will likely continue to decline, which may cause prices/inflation to exceed 9%, so a healthy position in gold may be wise.

Bottom line: Issachar is “all in,” expecting the Fed to begin its rate-lowering campaign in September that could take stock prices to higher highs. The Fed is behind the curve because the market has decreased rates since April, and a soft landing is expected in this Goldilocks economy. I expect short-term rates and the dollar to decline while inflation may come back with a vengeance, but not today, so let’s follow the trend until it bends in the end. The government spent more money since January 2023 than it did during COVID. Sooner or later, the market will demand higher and higher rates on our Treasury bonds, and Congress will be forced to cut spending, but not today. Managing risk and position sizing is the key to achieving long-term financial goals. Grace & Peace to Everyone!

PS: Take your family and friends to see “The Forge,” and you will be marked. 

The LORD is my shepherd, I lack nothing. Psalms 23:1

Investors should carefully consider the investment objectives, risks, charges, and expenses of the Issachar Fund. This and other important information about the Fund are contained in the Prospectus, obtained by calling 1-866-787-8355 or visiting IssacharFund.com. The Prospectus should be read carefully before investing. The Issachar Fund is distributed by Northern Lights Distributors, LLC., a member of FINRA/SIPC. Horizon Capital Management Inc. (HCM) is not affiliated with Northern Lights Distributors, LLC.

Important Risk Information: Mutual Funds involve risks, including the possible loss of principal. An investment in the Fund may not be appropriate for all investors. The Fund may hold cash positions when the Adviser feels that the market is not producing returns greater than the short-term cash investments in which the Fund may invest. There is a risk that the sections of the market in which the Fund invests will begin to rise or fall rapidly, and the Fund will not be able to sell stocks quickly enough to avoid losses or reinvest its cash positions into areas of the advancing market quickly enough to capture the initial returns of changing market conditions. The Adviser’s judgment about the attractiveness, value, and potential appreciation of particular asset classes and securities in which the Fund invests may prove incorrect and may not produce the desired results. Past performance is no guarantee of future results. Ratings are only one form of Fund performance and should not be used as the sole consideration in an investment decision. Opinions expressed are subject to change, not guaranteed, and should not be considered investment advice. There is no assurance these opinions or forecasts will come to pass, and past performance is no assurance of future results. For more information regarding the Fund, including current performance, please visit IssacharFund.com. NLD Compliance Code:  20240826-3814519

Dexter Lyons, Portfolio Manager
Issachar Fund (LIONX & LIOTX)
337-983-0676   [email protected]
Buy Issachar Fund @ Schwab, Fidelity, or Online
Fully Committed to Biblically Responsible Investing (BRI)

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Issachar Fund
c/o Ultimus Fund Services, LLC
4221 N. 203rd Street, Suite 100
Elkhorn, NE 68022
866-787-8355
337‐983‐0676

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Important Risk Information

Investors should carefully consider the investment objectives, risks, charges and expenses of the Issachar Fund. This and other important information about the Fund are contained in the prospectus, which can be obtained by calling 1-866-787-8355 or going to the Documents page.  The prospectus should be read carefully before investing. The Issachar Fund is distributed by Northern Lights Distributors, LLC., member FINRA/SIPC

The Issachar Fund involves risks including the possible loss of principal, and may not be suitable for all investors.

The Fund may engage in frequent trading, leading to increased portfolio turnover, higher transaction costs, and the possibility of increased net capital gains, including net short-term capital gains that will be taxable to shareholders as ordinary income when distributed.  The Fund may hold cash positions and there is a risk that the sections of the market in which the Fund invests will begin to rise or fall rapidly and the Fund will not be able to sell stocks quickly enough to avoid losses, or reinvest its cash positions into areas of the advancing market quickly enough to capture the initial returns of changing market conditions.  The Fund’s investments in large capitalization stocks may underperform Funds that invest primarily in the stocks of lower quality, smaller capitalization companies during periods when the stocks of such companies are in favor.  Investments in small-capitalization and mid-capitalization companies involve greater risks and volatility than investing in larger capitalization companies.  Small and medium-size companies often have narrower markets for their goods and/or services and more limited managerial and financial resources than larger, more established companies.

The Fund invests in debt instruments which have varying levels of sensitivity to changes in interest rates, credit risk and other factors.  Many debt instruments are subject to prepayment risk, which is the risk that the issuer of the security will repay principal prior to the maturity date.  The Fund could lose money if the issuer or guarantor of a debt security goes bankrupt or is unable or unwilling to make interest payments and/or repay principal.  Changes in an issuer’s financial strength or credit rating also may affect a security’s value and have an impact on Fund performance.  The value of the Fund’s investment in fixed income securities will fall when interest rates rise and the effect of increased interest rates is more pronounced for intermediate-term or longer-term fixed income obligations owned by the Fund.  The Fund will invest a significant portion of its assets in securities that are rated below investment grade or “junk bonds.”  Junk bonds may be sensitive to economic changes, political changes, or adverse developments specific to a company.  These securities generally involve greater risk of default or price changes than other types of fixed-income securities and the Fund’s performance may vary significantly as a result.  The floating rate loans in which the Fund invests are usually rated below investment grade and are generally considered speculative because they present a greater risk of loss, including default, than higher quality debt securities and may be less liquid than higher rated debt securities.

The value of the Fund’s asset-backed securities may be affected by changes in interest rates, the availability of information concerning the interests in and structure of the pools of purchase contracts, financing leases or sales agreements that are represented by these securities, the creditworthiness of the servicing agent for the pool, the originator of the loans or receivables, or the entities that provide any supporting letters of credit, surety bonds, or other credit enhancements.  The Fund’s investment in municipal securities carries additional risk including changes in federal, state or local laws that may make a municipal issuer unable to make interest payments when due. Municipal securities backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the inability to collect revenue, for the project or from the assets. Moreover, an adverse interpretation of the tax status of municipal securities may make such securities decline in value.  In addition to the risks typically associated with fixed income securities, loan participations carry other risks, including the risk of insolvency of the lending bank or other intermediary.  Loan participations may be unsecured or not fully collateralized, may be subject to restrictions on resale and sometimes trade infrequently on the secondary market.

The Fund uses investment techniques, including investments in futures contracts, forward contracts, options and swaps, which may be considered to be an aggressive investment technique.  Investments in such derivatives may general be subject to market risks that may cause their prices to fluctuate over time and may increase the volatility of the Fund.  The use of derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives, such as counterparty risk and the risk that the derivatives may become illiquid.  The use of derivatives may result in larger losses or smaller gains than investing in the underlying securities directly.   Interest rate swaps are subject to interest rate and credit risk.  Total return swaps are subject to counterparty risk, which relate to credit risk of the counterparty and liquidity risk of the swaps themselves.  There may be an imperfect correlation between the prices of options, futures, and/or forward contract and movements in the price of the securities (or indices) hedged or used for cover which may cause a given hedge not to achieve its objective.  There may not be a liquid secondary market for futures contracts and Forward currency transactions include the risks associated with fluctuations in currency.   If the Fund uses a hedging instrument at the wrong time or judges the market conditions incorrectly, the hedge might be unsuccessful, reduce the Fund’s investment return, or create a loss.  Use of leverage can magnify the effects of changes in the value of the Fund and makes them more volatile and increases the risk for loss in adverse environments.  Short positions are designed to profit from a decline in the price of particular securities, baskets of securities or indices.  The Fund will lose value if the instrument’s price rises – a result that is the opposite from traditional mutual funds.

Investments in foreign securities and securities that provide exposure to foreign securities involve greater risks than investing in domestic securities.  As a result, the Fund’s returns and NAVs may be affected to a large degree by fluctuations in currency exchange rates, political, diplomatic or economic conditions and regulatory requirements in other countries. The Fund also may invest in depositary receipts, including ADRs, which are traded on exchanges and provide an alternative to investing directly in foreign securities.  Investments in ADRs are subject to many of the risks associated with investing directly in foreign securities.  The laws and accounting, auditing, and financial reporting standards in foreign countries typically are not as strict as they are in the U.S., and there may be less public information available about foreign companies.  Investments in emerging markets instruments involve greater risks than investing in foreign instruments in general. Risks of investing in emerging market countries include political or social upheaval, nationalization of businesses, restrictions on foreign ownership and prohibitions on the repatriation of assets and risks from an economy’s dependence on revenues from particular commodities or industries among others.

No-Load mutual funds are sold without a sales charge, however other fees and expenses do apply to an investment in the Fund.

Total annual fund operating expenses are 2.74% for Class N and 2.48% for Class I. 

NLD Review Code: 3538-NLD-11/07/2023  (Home Strategy Page)

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