Program: Cavuto Coast to Coast
Station: Fox Business News
NEIL CAVUTO: We got Martin on this. The Kingsview Asset Management CIO. You know, Scott, it’s sort of like all dressed up, but no place to go. So is, you know, hot and very, very excited consumers who want to get their hands on a car, but they can’t find them, or at least the ones they want, and they wait and wait and wait. What do you make of this?
SCOTT MARTIN: They do, and they probably lose interest, Neil, and also don’t even mention the fact that there’s repairs out there that need to be done on some of these cars that folks have that they can’t get done either. So if you talk to a lot of these automakers, if you talked to a lot of the auto dealers? Not only are they having trouble getting materials, they’re actually even having trouble getting workers. So if you even get the materials into the dealership, having somebody to fix it, they’re if they’re actually coming into work is another story.
CAVUTO: You know, this problem doesn’t seem transitory, right? I mean, you and I have gotten into this before this notion that inflation and all these other issues are going to be short lived. Well, we’re past the short lived transitory stage just taking let his reported face value cars right now. This extends well into next year, maybe beyond. What do you think?
MARTIN: Yeah, I think it does, and I’ll tell you what else, Neil, if you just look at the effects that some of the issues have with the global supply chains on on all industries. In fact, if you look at how demand starts to wane because folks lose interest, folks find other things that they want to do or buy. You’re talking about a major effect on just the overall economy, but also in other areas of the economy than just autos. So if you look at the spread, that’s likely you had if this continues, that has a detrimental effect on future growth.
CAVUTO: How do you like the markets now? It’s been a bumpy September typically is, but we can’t get past our own way. Today’s game notwithstanding, what do you think generally has got a lot of bumps ahead?
MARTIN: Yeah, yeah. Yeah, look, I think there’s going to be a lot of bumps ahead. And if you’re a long term investor, you have to take those bumps in stride. Use some of those pullbacks and some of the Microsofts, the Amazons, the Adobe’s the Nike’s to buy in more on your positioning. Because if you see any kind of pullbacks five 10 percent in the market, you’re a long term investor. You have to take those opportunities to load up on some of the positions that may be weak in your portfolio because overall, a lot of those companies, a lot of those stocks I mentioned, I think, are going up into the right in the future.
CAVUTO: You know, you mentioned technology, it’s been taking it on the chin, say Microsoft today. You know, it’s buying back 60 billion dollars worth of its stock. It just raised its dividend 10 percent. It was flirting with the $300 a share before. I don’t know where it is now. If we can pop it up, guys, but what do you think of that?
MARTIN: Yeah, I think the buybacks are key. I mean, if you have a lot of these companies now that are preparing for higher taxes on the corporate tax rate coming forth, you have a lot of cash flow companies that are doing very well in the cash flow analysis. And so therefore they’re looking for something to do with all this. Cash buybacks is one thing. Dividends are another thing, and that actually intrigues investors to go out and buy shares of the companies that are doing that.
CAVUTO: All right. Scott, I want to thank you very much, my friend. Always good catching up with you.