CIO Scott Martin Interviewed on Fox Business News 2.24.21

Kingsview CIO Scott Martin discusses how the stimulus is baked into the market, and why Chairman Powell Chairman Powell will need to stay on the path he’s on for the time being.

Program: Cavuto Coast to Coast
Date: 2/24/2021
Station: Fox Business News
Time: 12:00PM

NEIL CAVUTO: You know, this is a big what if, but what if this whole thing fails? What if it goes kaput? What if they don’t get their differences reconciled and that one point nine trillion-dollar stimulus plan, the sort of the battle holy grail for this new administration, what if it just doesn’t happen? What would be the fallout? Scott Martin, Kingsview Asset Management. Susan Li, our superstar here at Fox Business. You know, I got to wonder, Susan, since the markets have factored in that it’s going to happen. It’s unlikely that it doesn’t, but it could. I mean, there were already a number of Republicans who’ve got at least a couple of Democrats with them worried about the price tag, worried about jamming in some of these other features. So then what?

SUSAN LI: Yeah, what a tangled web we weave, right. Thought you’d like that – that was for you Neil. So, yes, I think the markets are anticipating some sort of stimulus, whether it’s one point nine trillion or just a few billion. I think they pretty much said that you have to follow the money, and the money is telling you that there’s going to be money printing coming from either the White House and the government administration or from the Federal Reserve. As you’ve heard two days now with Jerome Powell, the Federal Reserve chair in front of Congress. So I think people are anticipating something. And don’t forget, you still have another trillion-dollar package infrastructure that will be also discussed and pushed for apparently already by the White House. So I think Wall Street needs something.

CAVUTO: If they don’t get it, Scott, of course, Mitt Romney has a column today ducking and bemoaning about all the issues that others are ignoring, that a lot of this is backloaded. A lot of this spending seven hundred, eight hundred billion dollars worth is meant for twenty twenty-two. So this idea that we urgently need it like now, now, now isn’t out there. So, again, I’ll ask you what I asked Susan. If this doesn’t come to be because the trip-ups on these issues, how will the market respond?

SCOTT MARTIN: It’ll feel a lot more than just a simple insect bite, Neil, where you can put some cortisone on it and take care of it in a few days, because if you want any evidence of that, I’ll tell you. Look, yesterday, yesterday, the Nasdaq is down about three and a half percent in the morning. Fed Chairman Powell comes out and starts talking about, don’t worry about inflation. We’re here for the markets. Unemployment is still terrible, et cetera, et cetera. Meaning we’ll be there for you, Mr. or Mrs. Market, as well as his partner in crime, Super Dove, Janet Yellen, treasury secretary, who’s been out talking about more stimulus, more trillions, wherever we can find it, print it, sell it and send it out. So the reality is, Neil, this is kind of baked in the markets to a degree, I believe. But the more it’s talked about in, the more becomes a reality, more the market loves it. The scary thing I will tell you, though, is even if Chairman Powell wants to get out of this situation and say, hey, if data changes, maybe we’ll change our role or slow our roll, the markets freak out. So he’s got to stay in the path he is on for now at least.

CAVUTO: Do you think, Susan, that that’s another superhero analogy? If you think about it, he’s in that role, Chairman Powell, of being like the superhero is going to guard and protect the markets. And his stance over the last two days is where I’ve got your back, does he?

LI: Yeah, that’s exactly what you’ve heard. You’ve heard all the right things being that we’re going to stay low, lower for longer and continue buying more than one hundred billion dollars of bonds each and every month. And what I took away yesterday was at six percent GDP forecast that he made for twenty twenty-one, saying that the recovery in the back half of this year is going to be stronger than the first half. And that will be, by the way, pushed through by the Federal Reserve or the White House and the government printing more money. There will be trillions of dollars there that will liquidate the market. And as we say that, you have to follow the money and watch growth managers. And what the money is telling you is that it’s still going into stock markets that’s liquify. So I use the wrong verb there. But you know what I mean? Meaning that you have to follow where the money is going and it’s going into stock markets right now and risk assets.

CAVUTO: So real quickly, Scott, do you see that changing? I mean, give me sort of your lay of the land for at least the next few weeks here.

MARTIN: No. And we’re cautious as far as bonds go, Neil. So Susan’s right. Money goes into stocks as a result. It goes into Bitcoin, it goes into gold, which are things that appreciate when there’s so much Fed printing. And I love the numbers. Susan threw out six percent GDP growth. We’ve got an improving, improving economic picture, yet Fed funds rate at zero and the Fed’s buying one hundred billion a month. Hey, why not start the party and keep it going?

LI: And by the way, six percent, just my follow up on that, Neil, six percent is almost three times the average for the GDP growth that we’ve seen over the past ten years. So that’s a lot. That’s a big bet. That’s your V shape recovery right there.

CAVUTO: But do you think we’re coming from awful levels, right? So, yes, it is good. I’m not minimizing that. But again, you know, it’s coming from depressed levels, but we’ll see. Guys, thank you both very, very much.


CIO Scott Martin Interviewed on Fox Business News 2.18.21 Pt. 2

Kingsview CIO Scott Martin discusses the manipulation of GameStop and the fundamentals of the market.

Program: Cavuto Coast to Coast
Date: 2/185/2021
Time: 12:00PM
Station: Fox Business News

NEIL CAVUTO: Let’s go to Ann Berry, I believe she’s still with us and Scott Martin, is Jackie with us as well? I just see Ann and Scott, So Ann let me get your take on that – Jackie is there – basically this is going to go on a long time. And basically, I can kind of see that, you know, the political response – We better not leave this with no response. They’re under increasing pressure by their own words and their threats to do something. What I’m not clear on and I know you’re leery of maybe the government getting over involved here, but that something is going to be done. I guess what I’m asking you then is what would do the least harm in the market’s eyes to police this? Because the market, I guess, is always worried if you police them how soon is before you police us, if you restrict their trading, how soon is it before you go after restricting our trading, if you charge them for doing what they did – how soon is it before you charge us for trades and all this other stuff that’s out there, you know, all across? I’m just wondering what would be the least foul alternative as far as government interaction here?

ANN BERRY: You know, Neal, I want to wonder whether one of the lessons that could be taken and looking at the banks out of this financial crisis could start to be applied for some of these alternative asset platforms. One of the things that the CEO of Robin Hood is saying in different ways when he’s asked the question is we weren’t ready. We couldn’t have anticipated for this to happen. And so we didn’t have the liquidity available to handle the unthinkable. And so, Neil, when I think about what could be a path of less harm as the new administration learns their way through this, is there a way to ask the Robin Hoods of the world to move the hedge funds of the world, to do more stress testing, to really try and analyze what would happen to their business models under certain risk scenarios or even thinking the unthinkable and make sure that they have a plan in place, a business continuity plan in place to handle it. So that’s one idea I would throw out there that helps to get some education going to the regulatory institutions, but also forces some of these business to make sure they’re prepared in ways they haven’t been so far.

CAVUTO: All right Ann but that makes way too much sense, so that’s not going to happen. So we’re done with you. Scott, I’d be curious to what do you tell investors? Because I’ve always step back and I’m always intrigued by how you guide investors through something — you can understand their frustration about. This is the only game in town. I see so many people around me and hear about these guys have become instant millionaires or would have should have could have on Bitcoin when it was trading at a thousand. Now it’s north of fifty- one thousand. They want in on that party. But as you know in your young life, I mean that, that, that’s not a widespread or heavily attended party. There are very few people who managed to pull that kind of thing off. So, what do you tell them when that especially younger investors who hear that you’re offering them a, you know, a market superior return, but they’re saying, well, yeah, eight, nine, ten percent, no, thank you. I want the fifty, hundred, three hundred percent return. What do you say?

SCOTT MARTIN: Yeah, they want the stuff that everybody’s talking about. But I don’t think a lot of people, to your point, Neil, are actually getting it – makes for good headlines. It’s good sensationalism, but it’s really not there as investment advisers. I have clients of my own, Neil — You know, we try to steer clear of some of this really speculative stuff. I mean, unlike Roaring Kitty and nothing against them, I don’t know him personally, but for him to come out and say that GameStop was an attractive stock at five, ten, fifty, one hundred, because the fundamentals seems nuts to me. To your point about stuff that we invest in, like the Amazons, the Googles, the Microsoft, the Apples, the Adobes, PayPal’s Visas, companies, we really like and understand and fundamentally have some security in them. Those are where we direct our investors, because unlike some of the comments in the previous segment about how this is a bad mark on the overall market, I really don’t think it is. I think to put GameStop and Bed, Bath and Beyond and AMC and Fossil and a couple others, these stocks that got really manipulated into the same category as, oh, this can happen to Amazon and Microsoft and Google. I just don’t see it. Those companies are way too big and way too actively traded to have this kind of manipulation that came through on GameStop when it was trading at five dollars a share and was well under a billion dollars in size. I mean, it was as Charlie said earlier, basically a penny stock. So we try to steer clear of these kind of speculative names, Neil, and get people into real fundamentals of the market, which you can find and you can find return and you can find some safety and some more predictability and I think the names that I mentioned.

CAVUTO: That’s interesting, I just should have listened to my teenage sons because, well, I thought GameStop was going out of style because we all download games and they seems plenty cool to us dad and by the way, just give us thirty bucks for this. So maybe I missed something there, but I’m clearly showing my ignorance. But, you know, Scott raises a very good point, though, Jackie, when you think about it, he drew distinctions and did research and his firm does research as does Ann’s. Just take a look — there is a difference between an Amazon or, you know, some of these other companies that come along or Tesla that — that are building something that a smart analyst could start, you know, crunching the numbers, saying alright this is not a, this is not some pie in the sky investing on potential versus earnings that might never come. There is a craft to that, and it’s called homework. It’s doing your research. Sometimes the research doesn’t pan out right away. Early investors of Amazon were frustrated. They weren’t seeing any gains for a long time before where they were. But –but — but there’s no shortcut to homework. I don’t know what that’s, you know, any sage advice on my part. But I would say that, you know, hard work is one thing, but also doing your research matters, no matter what it is in terms of buying, you know, a furnace for your home or, you know, checking out contractors and who’s good at what and yeah, buying stocks, that that might be risky. What do you think?

JACKIE DIANGELO: It’s a lesson for all of us, Neil. And it applies broader than just the stock market as well. As you say, you know, when you work hard for a buck and you’re going to spend it on something, whether it’s an equity purchase or a physical asset, like you mentioned, you know, remodeling, whatever the case may be, you do need to do your research to make sure that you don’t get burned. And you mentioned the companies, the tech companies that everybody loves, like Amazon, Microsoft and Apple. These are companies that if you sat back and looked at them and you could pull their financials up on the Internet, you could see they have cash flow, they have earnings, they have a business model, they have innovative leaders. They’re trying to change their business model with a plan, with a structure. The last time that I was talking about GameStop before the frenzy was an assignment where I was standing in front of GameStop telling you about the fact that there was nobody in the store, nobody was buying anything, and this wasn’t a sustainable business model anymore. So there are some people out there like Roaring Kitty, for example, who will say, well, they finally got with the program and they’re not just selling these game cartridges. They’re going to start competing with Fortnight and all of these online gaming apps and whatever the case may be. But they’re really, really late to the party. I mean, so what it comes down to about investing is sit back, look at the thesis, try to understand what the business model is, what they’re doing. Are they an early mover? Are they late mover? Really basic stuff. But to your earlier point, people look at the stock market and they see other people making these kinds of gains and the Hedge Funds and smaller investors and they want a piece of it and they sort of feel like they’ve been left out of it. So, something like this happens with GameStop. And remember the role that technology played here. I will disagree with Roaring Kitty and say this is not like the conversation that you have on the golf course or at the water cooler. The technology democratized that conversation the same way it did in the Arab Spring, which I covered, for example, where people were able to organize themselves and they were able to get together in a way that they never have before, that technologies out there. So this is not going to stop as we move forward.

CAVUTO: Yeah, you know what gives me pause, though- and reputable stock people who follow the market for a living, they generally don’t have nicknames, right? I mean, I know Warren Buffet is the Sage. I get that. But Scott Martin is not Madman Martin, you know,

MARTIN: I might be now.

CAVUTO: You are now. But if I know I’m going in to an investment recommended by Roaring Kitty someone should grab me and just say Neil now what are you doing. And, and sometimes these are manifestations of a lot of craziness that well I tell people maybe you should step back a little bit. There might be perfectly justifiable reasons to get into this. And you like hearing them from a guy named Roaring Kitty. Fine. But maybe that should tell you something that maybe that should indicate how frothy and almost theatrical this is, this has become. But I’m just wondering whether that kind of behavior that drove mentality to follow that behavior is part of the problem here. We’re getting a little ahead of ourselves. What do you think?

BERRY: I think Jackie sort of touched on when she talked about the Arab Spring, I mean, the fact that that could be drawn as the comparisons extraordinary, but it points to the idea that this crowdsourcing of ideas, social media pulling on so many different individuals to come up with ideas, project them and amplify them, whether it’s on stock trains, whether it’s or political positions. I think what you’re really sort of leaning into here, Neil, is do we have appropriate disclaimers? Do we have on these platforms enough caveat emptor or buyer beware warnings that the content that people are receiving is not from folks who are professionally trained in that whole homework process, which Jackie laid out. And so, you know, I don’t know that Madman Martin necessarily is going to be the turn of the people to listen to those voices. I mean, I will see that Twitter handle, I’m sure will bounce up. But I do think it’s about disclaimer. And again, I think it comes about how do we reach folks, younger folks who are digitally native, who are growing up with social media and mobile devices in their hands, and how do we teach them early to do their homework on where their content is coming from and to make sure that they’re educated from lots of different sources before they go ahead and pull the trigger on some really risky behavior.

CAVUTO: All right. I’m still working on a nickname for you Ann, Scott I have you figured out. Jackie, don’t get me started, but we’ll see. We’ll see what happens. By the way, one viewer is letting me know who are you to rail against nicknames, Neal? That he’ll see what you see up there with amorphous


Portfolio Manager Insights | Weekly Investor Commentary – February 24, 2021

Click here for the full commentary.


Investment Committee

Recent frigid weather across the American South resulted in state emergencies, including in Texas where millions were without power and potable water for several days. And while Texas has an independent energy grid, the disruption to oil production and refineries was felt across global energy markets. Amid ongoing investigations and political finger-pointing, many investors may be asking how this could affect their portfolios.

It goes without saying that energy is the lifeblood of the economy, with global oil demand reaching 100 million barrels per day prior to the COVID-19 crisis. Although there is increasing attention on renewable energy sources, including among investors, fossil fuels still constitute the vast majority of energy use.

Oil and natural gas prices tend to be highly correlated with economic booms and bust, as was seen during the mid-2000’s housing bubble when crude reached historic records and, more recently, during the nationwide lockdown when oil prices plummeted. This latter episode resulted in a negative price of oil when financial investors were forced to pay to get rid of contracts in order to avoid taking physical delivery.

Less than a year later, oil prices have recovered somewhat as the economy has rebounded. These episodes are a reminder that disruptions to energy markets can occur at any time. Challenges facing U.S., Middle East, and other regional producers are always possible. Fortunately, it appears that production can eventually get back on track, inventory levels can cushion the shock, and demand is still relatively weak due to the pandemic.

Longer-term, there are three key ways, among many, in which energy has a mixed impact on diversified investors. First, the performance of the energy sector directly impacts the S&P 500. For instance, the 2014/2015 oil price crash resulted in an 80% earnings decline for the energy sector, causing an “earnings recession” for the overall market. Although this didn’t result in a broader bear market or economic recession, it was certainly felt by investors and those who work in the industry.

More recently, rising oil prices have helped to boost the sector. While earnings are far from their levels prior to 2014, they have climbed significantly from their 2020 lows. This is one reason that energy sector shares have climbed over 20% this year. Second, higher energy prices are effectively a tax on consumers and businesses. Gasoline prices have been rising steadily since last year with the national average of regular unleaded climbing 80 cents to around $2.50 per gallon. Although many Americans are driving less during the pandemic, higher gasoline prices eventually filter through to all goods and services.

Finally, higher energy prices fuel concerns of rising inflation. While inflation measures usually exclude volatile categories such as food and energy, rapid increases in these prices can make them hard to ignore. So far this year, commodities have outperformed the S&P 500 as an asset class by returning over 9%. There are even those calling for a new “commodities supercycle” – a decades-long rise in commodity prices and production. Whether this occurs has yet to be seen. In the meantime, the increases in prices, demand and supply of oil, metals and agriculture commodities mirror the economic recovery.

It will take time for the dust to settle on the recent disruptions in the South. The ongoing challenges to the energy industry may take time to work out as well, especially for those who depend on it for the livelihoods. In the meantime, investors ought to focus on the longer-run implications of rising energy prices beyond recent headlines.

Oil prices have been recovering steadily since the COVID-19 lockdown began

1.) Oil prices have been recovering since they fell into negative territory last year.
2.) Recent weather events in the American South have disrupted production, pushing prices up further.

Oil prices have direct consequences for the energy sector and the overall stock market

1.) Oil prices directly affect the energy sector which, in turn, impact the overall stock market. This was best seen during the 2014/2015 oil price collapse which resulted in an “earnings recession” for the broader S&P 500.
2.) Conversely, higher energy prices have helped to boost the sector significantly since the 2020 lows.

Gasoline prices have been rising, affecting all consumers and businesses

1.) Energy prices, and gasoline specifically, directly impact consumers and businesses. While prices are still below their long-term averages, they have been rising over the past year.
2.) Due to how rapidly prices are rising, fears of inflation have spurred across the country.

Historical references do not assume that any prior market behavior will be duplicated. Past performance does not indicate future results. This material has been prepared by Kingsview Wealth Management, LLC. It is not, and should not, be regarded as investment advice or as a recommendation regarding any particular security or course of action. Opinions expressed herein are current opinions as of the date appearing in this material only. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate their ability to invest for the long term. Investment advisory services offered through Kingsview Wealth Management, LLC (“KWM”), an SEC Registered Investment Adviser. (2021-85)


SVP Paul Nolte Interviewed on WGN Radio 2.23.21

Kingsview SVP Paul Nolte discusses how the market is shifting away from technology and into other parts of the economy that will benefit from an economic reopening, and how small stock are benefitting. He also talks about how future returns look for the next 3-5 years, and how advisors are watching closely to see what happens with the stimulus package.

Click here to listen to the interview


SVP Paul Nolte Interviewed By Reuters 2.23.21

Reuters interviews Paul Nolte, SVP & Sr. Portfolio Manager

Paul Nolte weighs in on Fed Chair Jerome Powell, and says he’s hitting expectations, keeping interest rates low and monetary policy relatively loose.

Click here for the full article


SVP Paul Nolte Interviewed on BNN Bloomberg 2.19.21

SVP and Portfolio Manager Paul Nolte discusses his latest market outlook. He weighs in on Bitcoin, and why he’s more interested in exploring the companies that may benefit from cryptocurrencies and blockchain than Bitcoin itself.

Click here for the full interview

SVP and Portfolio Manager Paul Nolte discusses his latest market outlook. He also talks about why he’s more interested in exploring companies that may benefit from cryptocurrencies and blockchain, than in Bitcoin itself.


SVP Paul Nolte Interviewed By Reuters 2.19.21

Reuters interviews Paul Nolte, SVP & Sr. Portfolio Manager

Paul Nolte discusses what factors might shake the market, plus how a steeper yield curve is “the bond market’s way of telling everybody that the economy is recovering and getting healthy.”

Click here for the full article


CIO Scott Martin Interviewed on Fox Business News 2.18.21 Pt.1

Kingsview CIO Scott Martin discusses the accessibility of Bitcoin as well as the responsibility Congress and the regulators face going forward.

Program: Cavuto Coast to Coast
Date: 2/18/2021
Time: 12:00PM
Station: Fox Business News

NEIL CAVUTO: I want to go to Ann Berry, a financial analyst, Scott Martin with Kingsview Asset Management CIO, Ann, where is this going? Where do you think right now this this is presently going?

ANN BERRY: I think this is going to start an increasingly visible presence in D.C., looking at some of these newer technologies, but I think Neil, the issue here is, is the question of really not being able to [illegible] when there are changes in regulation, ending short, selling is something I heard you just mentioned. There are huge unintended consequences to this. And I think what really points to is a need for the regulatory bodies to invest more in technology, to be more forward looking than reactive and to really start thinking about how they can get ahead of some of these trends rather than respond to them sort of after the case has bolted.

CAVUTO: Jackie DeAngelis, I didn’t see you here, I apologize, you’re joining us here. You’ve talked to a lot of traders a lot of the time, you know, the system isn’t broke. It’s working the way it should. And some people rush into something, are going to get burned and the door is only so wide on the way out happened in many other prior market disruptions. And I’m using a kind word there that we’re a lot worse sometimes, especially in the middle of the financial meltdown in two thousand eight and nine. And I’m just wondering what they’re telling you now.

JACKIE DEANGELIS: Well, that is what a sophisticated trader would say about what happened here. And they would say, buyer beware, if you’re a little guy and you’re putting your toe in this big pool of water and you don’t know what you’re doing, you can get burned. And as we know, the short sellers got burned. But a lot of people who didn’t necessarily have the timing right on the GameStop stock, for example, got burned as well, too. And it’s coming down to is sort of these traders aren’t really sticking their nose in the fray at this moment. But what I look at is why did this happen in the first place? Right. Why were people taking stimulus checks and going on Robin Hood and investing in these stocks that maybe or maybe not don’t have the fundamentals to move higher the way they did in such a fast clip? It’s really because of the market environment that’s being created. And we have to step back, and we have to look at that. Right. We’re in the middle of a pandemic. We’ve got these low interest rates. A lot of people are out of work. A lot of people are suffering in the stimulus money that’s supposed to put food on the table is now being invested in the stock market. And people are using this as a way of generating income. That’s not what the stock market is supposed to be. You’re supposed to invest it for the future on fundamentals. You’re not really supposed to get ahead of your skis here. And that’s one of the big issues, I think.

CAVUTO: You know, Scott, you and I discussed as I was talking to a trader not too long ago said, you know, Neil, the one thing that could stop this craziness is suitable competition for stocks. And right now, even with the slight back up in rates that we’ve seen, there’s none out there. So, this type of behavior will probably continue when you’re looking at near zero percent interest rates of CDs that return a fraction of a percent on your money, you’re going to see more of this. And, you know, real estate, real estate might be an alternative for some, not all. And that, you know, markets that have run up fast and rich, they look for alternative investment or hidden buys within those markets to keep the good times going. So, isn’t that the backdrop that actually advances more of this behavior no matter what Congress tries to do?

SCOTT MARTIN: Agreed. And to Jackie’s point, Neil, the way the setup is, it’s kind of forced these investors, let’s say, let’s call them that graciously, to take those checks and put the money in the stock market instead of putting it for maybe food on the table or maybe they didn’t need the money so they’re using it for other things as well. And so those alternatives just don’t exist right now. I would argue there is an alternative that’s out there that seems to be going that route, which is Bitcoin, as that has proliferated and proliferated into different segments of the population. More people have access to that risk profile. As far as Bitcoin goes. I’ll tell you one quick thing, though, to stay with kind of the animal theme, as you asked Ann earlier, where is this going? It’s going down a rabbit hole, if I may say, because this type of thing that just happened is not going to occur again. I mean, the horse has already left the barn, as have all the other cattle. And I’ll stop with the animal references there, because the reality is this was a once and kind of maybe a lifetime occurrence of how just the SEC and some of the regulators, Robin Hood and all these other things came to be and came to exist as how things could happen the way they did. So, going forward, as I think and pointed out correctly, and this is scary to think that Congress and the regulators have to kind of take on this responsibility. They’re going to have to get ahead of what this next crisis may be, because we’ve had things, like you said, in the financial crisis in the past, the flash crash, which was just a couple of years after the financial crisis occurred to where there’s been all kinds of market manipulation and liquidity drying up that has caused things like this to happen, just like happened with GameStop and some of these other things just a month ago.

CAVUTO: You know, and it’s very, very clear right now that the targets, at least for the politicians, are the Citadel and Melbourne Capital CEOs. They’re the rich guys. They’re the ones with the billions and the hedge fund investors that pay, you know, handsomely for their services. And they are the ones who will be the targets. You think this could get to the next stage where we really go after Hedge Funds, really limit what they can do, regulate the hell out of them beyond efforts that have been made in the past, particularly after the meltdown.

BERRY: I’m not sure the facts that are coming out of this is going to be able to precipitate that Neil, I think as the hearing continues and the Hedge Funds make their case that they there were new rules that were being broken, that some Hedge Funds lost a lot of money and all this some made some more. So, I don’t know that this does become the catalyst for going after the Hedge Funds more aggressively. But I do just want to come back to something that Scott said. I’m not sure that this doesn’t happen again. And Jackie said something really important, which is why are people going out and spending their stimulus checks and doing speculative trading instead of putting the food on the table? And what I’m hoping, Neil, is this prompt a different kind of policy response, which is better education that starts in schools. It starts in high schools that teaches young people before they can go on these apps. What is a fundamental stock analysis? How to manage personal budget? And this becomes a much broader discussion around how to make sure that, you know, the average retail investor is well equipped to distinguish fact from fiction when they’re making some of these decisions.

CAVUTO: Jackie, and I’m not blaming your generation or young people in general, but a lot of them have been intrigued to come back into the market. But wanting to get or land on the next Tesla land on the next Amazon land on, you know, even a Microsoft, that all of a sudden starts, you know, churning and making money hand over fist and the stock rises. But they’re always late on those big guys. So, they look and scour for, in this case, all the stocks that have been shorted. It builds a little drama, a little excitement over, you know, even if they come up a little bit on a percentage basis, it beats this. They dismiss eight, nine, 10 percent returns with a mutual fund because, well, we should be able to do better than that. I I’ve heard of these people talking again about these new investors. Jackie, I want the Tesla return. I want the apple, I want that. And the only way to do it is to get deeper into these risky areas without seeing it is risky. They can make pay dirt day trading on it, they’ll do that. Is there any way you can police that sort of thing in a market that offers few other alternatives? Because the CD return seems boring, a treasury note seems boring. You know, a lot of people have been turned on to some commodities lately, but that by percentage terms is boring and they don’t want boring.

DEANGELIS: I don’t think you can police it, Neil. I think what you have to do is step back. If you’re somebody who’s going to regulate the Hedge Funds or try to change the system in this way, we have to keep you know, I say that again. Why did this happen? That’s what we have to explore here. And you’ve got to make a more traditional investing. To Ann’s point, part of it is about the education in the stock market and investing. But also, part of it has to be that if I have a traditional high yield savings account and literally I’m telling you true story here, they sent me a notice when I signed up for it, my interest rate was one percent. Every month they kept sending me an email that said, it’s going down. It’s going down. It’s going down, till zero. And so, what you have here is a class of investors who, as you said, they want to get rich quickly and they’ve seen people do it in the stock market with Amazon, with Microsoft, with Apple. And they’re trying to play games here. And unfortunately, you know, that really wasn’t I know a lot of people make a lot of money that way, but that really wasn’t what the markets were intended for. And if there were other alternative investments that were more attractive, if rates were higher, if CDS yielded more, if the bond market was more attractive right now, people would have a little bit more of a diverse asset class to get into and they wouldn’t be risking so much. When you turn Wall Street into a casino and you see your friends around you investing in some of these companies and literally turning into millionaires over the course of weeks, months or even a couple of short years, you sit down and you’re coming to work every day and you’re saying to myself, what am I doing wrong here? My God.

CAVUTO: Yeah, I just found out, Jackie, the other anchors here are paid and they’re really ticked me. So you might be right. You might be right.


Kingsview Investment Management’s Blue Chips Elite wins the ‘2021 Best Risk-Adjusted Returns – Equities’ Award

SMArtX Advisory Solutions (“SMArtX”) is a leading innovator in unified managed accounts (UMA) technology and architect of the SMArtX turnkey asset management platform (TAMP). After analyzing the 725 strategies available on their platform, they endeavored to recognize the firms who best demonstrate asset management excellence and outstanding performance.

Kingsview Investment Management’s Blue Chips Elite was nominated for Best Large Cap Strategy and won the ‘2021 Best Risk-Adjusted Returns – Equities’ award by achieving the highest Sharpe ratio in 2020 out of over 400 strategies in the category.

To view all of the award winners, you can click the link below.
2021 Awards Home Page | SmartX Advisory Solutions

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