CIO Scott Martin Interviewed on Fox Business News 9.28.21

CIO Scott Martin Interviewed on Fox Business News 9.28.21

Kingsview CIO Scott Martin discusses gas prices, hyperinflation and making sure the labor force comes back online.

Program: Cavuto Coast to Coast
Date: 9/28/2021
Station: Fox Business News
Time: 12:00PM

NEIL CAVUTO: So should you be worried about this, as we were indicating here there already, gas lines forming and large swaths of Great Britain? It’s hard to get the gas out because it’s very difficult to get it shipped to stations right now because of the supply, you know, shortage that we’re dealing with. So those gas lines that have been becoming a predominant scene right now in Great Britain, could they come back here for those of a certain age? You remember the early 70s in the late 70s when that was quite common? Are we revisiting the past even though Scott Martin wasn’t even alive? I suspect he reads history books. So. Scott, what do you think? Are we looking at the same?

SCOTT MARTIN: I do I did a deep study, Neil. I was born in the gas prices crisis, so let’s say that that’s indicative enough. So I don’t believe so because the infrastructure and the transportation structures here in the US are much better, let’s just say, than what we’re seeing in Great Britain so far. So I think we’ll be OK. Aside from maybe a pipeline attack or something that remember just a recent note. So I believe that things are going to be relatively OK. But that doesn’t isolate us, Neil, from the fact that you mentioned earlier with Grady about how some of the targets on crude prices now have moved up to 90. Our target personally at Kingsview is about $100 a barrel within the next six to eight months because of demand coming back online and because of supply supply constraints. So there are realistic impacts to the fact that we are going to see higher order, which is also not only hurting the consumer, but think Neil, about the producers and some of the companies who factor in these oil prices. So much of their production, their transportation of goods and services that’s going to tick up the prices and costs for them as well.

CAVUTO: You know what’s weird about it, though, if you think about the Scott, normally supply and demand and more demand for existing supply is a good indication for an economy that things are beginning to fire up post-pandemic and all the Delta variant issues notwithstanding, we’re humming again. Or is there something more going on that we have to worry? There’s such a thing as humming and then all of a sudden, you know, things get get out of hand with that and inflation gets out of hand. And you have the Jerome Powell, who has long been saying all of this is transitory, acknowledging Guess it’s not. What do you think?

MARTIN: Yes. And then the music stops and I agree with you, there’s a certain inflation that’s good. And frankly, Neil, that we’ve seen over the course of many years back to my very deep studies of these matters where as long as inflation is not hyper, let’s say it is transitory that shows up in stock prices like that is OK. When inflation is unmanageable and just crazy, hyperinflation is, as a word, is used in economics. That’s not so great. What I do believe is different about this time around is that typically inflation is too much money chasing too few of goods. Again, definitions I’ve read about in the history books today, though, we have sort of a lot of money chasing way too few of goods, and that goes back to the things you talked about with Grady throughout the show today about some of these supply concerns. We have, yes. And the fact that we don’t have the labor to support the needs that we have to kind of facilitate the delivery of those goods and services. So we need to rectify that. And that’s one big concern that we have at Kingsview you now and how we’re managing money for our clients is that making sure that that labor force comes back online because now we have, according to latest JOLTS survey Neil, about 10 million jobs that are available and ready to be taken by everyday Americans that are not being filled. And so we need to get that production back online so that we can facilitate or at least alleviate some of those supply issues and some of the delivery issues that we’re seeing around the world.

CAVUTO: Now, all of that information, to your point, is real. Next time we’re together, I’ll tell you about my wife and I had our first mortgage with 13 and a half percent, but we don’t have time right now, but I want a deal. It’s a great story. You probably didn’t hear it. You know, under one hundred times before. Scott, great catching up with you, my young lass.