Biblical Stock Market Updates

Issachar is invested in growth stocks that should benefit from a faster-growing economy as America returns to work.  The inflation trade seems to be in focus as the dollar continues to decline.  The reopen/recovery stocks appear to be under accumulation, and that is where I see opportunity.  If I am wrong, I do not plan to stay there.  I plan to adjust the sails and let the wind steer us in the right direction.  Of course, God controls the wind, so I follow Him above everything!  

Issachar is less invested than the prior week as price action after earnings announcements are not very encouraging.  The major indexes are near all-time highs, but the action below the surface has me concerned.  We may be setting up for a correction or a minor pullback.  I am patiently waiting for proper buy points before taking any new positions, but they are hard to find.  Patience is a Fruit of the Spirit, so I wait. 

Growth seems to be in favor, so that is where we are invested.  Earnings are coming in better than expected for the most part, and I am encouraged.  Issachar stocks are fundamentally strong, with accelerating earnings and sales exhibiting sound chart patterns of institutional accumulation giving me great conviction.  I believe we could be entering a more favorable period where growth stock investors are rewarded for taking risk.  However, I rely on God’s Wisdom to keep us out of harm’s way and steer us in the right direction.      

The Fed stepped on the gas last week by creating more money to buy more bonds.  When the Fed buys huge amounts of bonds with newly created money, rates tend to fall, and stocks tend to rise.  The economy also benefits from the Fed’s balance sheet expansion project, so it seems like the market and economy are firing on all cylinders.  This year has been marked with stocks rotating from one sector to another, but that could be changing to favor our growth stock picking discipline.  I plan to enjoy the ride while it lasts because it will not last forever.  The only thing that lasts forever is God’s Word.   

Growth may be under accumulation, taking the lead, and value may take a rest.  I continue to find what I believe are best-of-breed stocks with accelerating earning, and sales and the future looks bright for growth, in my opinion.  I expect 1st quarter earnings to come in better than expected, and I believe the tide could rise and lift many of our boats.  If I am wrong, I rely on God’s Wisdom to do what is right.    

I like what I see in the market, and I am repositioning Issachar to take advantage of the opportunities that I am anticipating.  1st quarter earnings should come in better than expected due to the excess liquidity that has been pumped into the system, and I believe stock prices should respond favorably.  I certainly hope you had a Happy Easter because Jesus is alive in us, and that is Good News!     

Issachar is lightly invested, and I plan to buy more stocks this week if the market does what I expect.  I have a process for letting stocks pull me in and push me out, and it has served us well by avoiding the significant declines and capturing the uptrends.  I believe the big-cap growth stocks will continue to underperform the small-cap value/cyclical stocks, so that is where I am focused.  Many "pent up demand" stocks are poised to advance, so this is an exciting time to be investing. May God's peace fill your heart!       

: Issachar is 75% invested in cyclical and small-cap stocks with accelerating earnings and sales that appear to be under institutional accumulation.  I believe we just experienced a technical correction, but the fundamentals and new money creation should help to bid up stock prices.  Yields are still rising, and it has not derailed the stock market, but it could if the rate of increase accelerates.  If the market responds positively to the excess liquidity that was newly printed, I expect to increase exposure.  I plan to let stocks pull me in as prices rise and push me out as stops are hit.  If the market thinks the Democrat proposed higher taxes and increased regulation will kill the economic recovery, stocks could fall into a steep correction.  However, I believe the excess liquidity will boost stock prices, and the uptrend will resume, so I am positioned accordingly.  If I am wrong, I will do my best not to stay that way.  I continually pray that God’s Wisdom would steer us in the right direction and away from danger.      

Issachar is 95% invested in cyclical and small-cap names as they appear to be under institutional accumulation.  The “stay at home” tech stocks seem to be breaking down while the “real economy” stocks appear to be breaking out, so that is where we will stay as long as we feel welcome.  If the Democrats keep passing pork-barreled spending bills without Republican support, we may get to a breaking point in the market before the 2022 elections.  The wind is at our back for now, and I expect smooth sailing ahead.  However, may God help us if the dollar starts to free-fall.  I believe that it is only by the Grace and Love of God that America is still a beacon of hope.  Thank You, Jesus!     

Issachar is in cash, but that could change quickly if the bottom on Friday holds and institutions continue buying. When institutional money moves in and out of the market, they show their hand by leaving big volume footprints.  I believe the big boys have been selling last year's winners and buying cyclical stocks based on a robust economic recovery expectation.  Once the COVID “fear” runs out of steam and Americans get back to “normal,” I expect the economy could zoom higher as $2 trillion finds a happy home. I believe the correction could be over, and a new breed of stocks could lead us higher.  The Bible tells us that fear is not from God, so fear not!