Kingsview CIO Scott Martin talks about the transitory phase that is pushing around markets, inflation rates and great buying opportunities.
Program: Your World with Neil Cavuto
Station: Fox Business News
NEIL CAVUTO: All right, sometimes good news is just good news, it can sometimes rattle the markets. It means higher interest rates today when all the dust settles because of that strong employment report that saw three hundred seventy-nine thousand jobs added to the economy, the unemployment rate dipping down to six-point two percent. It was enough to propel stocks up about 600 points. Interest rates have been back it up a little bit. But again, all of that has been in response to this strong economy and investors are juggling. Is that good or bad, especially if it means now we don’t need as generous stimulus and markets like stimulus. It’s a mess. It’s confusing. But right now, Scott Martin, an uncanny read of these markets and their manic ways can help explain what’s going on at the end of the day, the end of the week. Scott, it sounds like they were OK with the strong economy. They could live with that. They in fact, they welcome that pretty much. Right.
SCOTT MARTIN: It also looks like at the end of the week, Neil, I picked the wrong week to quit drinking because we needed it this week. I mean, the markets were all over the place. That’s a Lloyd Bridges reference, by the way, from airplane, not mine, so everybody just calm down
CAVUTO: But very good, very good, before you were born.
MARTIN: And there’s there’s more behind that where they came from. But, Neil, you’re right. I mean, the markets have been very schizophrenic this week because they’re dealing with higher interest rates because of all the debt we’re issuing to pay for all these stimulus plans. They’re dealing with the fact that, yes, I mean, my goodness, the economy is going to start breathing on its own for once in the last couple of years. And so, we’re excited about that, at least since covid started. And we are going to get some inflation as a result. Boys and girls, because of the growth. And so, we have to come to grips with kind of this transitory phase that is pushing around markets, scaring investors for sure. I mean, some of my clients were pretty freaked out yesterday. And as
we talked yesterday, great buying opportunity on the FBN show Cavuto Coast to Coast because of the fact that things were overdone yesterday, Neil. Today they got back to where they should be, I believe.
CAVUTO: Yeah, you pointed that out, but a lot of people don’t get FBN, I say they should demand it, but they miss that
MARTIN: But Demand it.
CAVUTO: Real quickly, Scott. Yeah, there we go. This notion that interests rates go higher when the economy starts humming like it has been, I guess the worry is that those rates could go a lot higher. Where are you on this?
MARTIN: They could go a little higher. I think they’re going to top out here maybe on the ten-year note, around two percent, a really good friend of mine and his wife in the late seventies. I think you know who this is Neil, bought a house where the mortgage rate on it for, I don’t know, twenty percent, what was it, seventeen I think — we could ask him right now. Your rates on your home, on your home mortgages aren’t bad. You’re saving rates were terrible. It’s not a lot to worry about.
CAVUTO: Thirteen and a half percent, I was a Nostradamus long before…
MARTIN: You thought you were a wiz… and we’re complaining about three percent rates maybe.
CAVUTO: Exactly. But it’s what you’re used to, right? The trend is what rattles folks. But Scott, well explained. I appreciate that, these kids today, Scott Martin, on all of that. In the meantime.