SVP and Portfolio Manager Paul Nolte discusses the flattening of the yield curve, and how the markets view the economy.
Senior VP Paul Nolte, a Senior VP talks about bitcoin, supply chain issues, and the struggle to get materials. He also discusses how workers currently have a little more leverage and negotiation power due to an employee shortage.
Kingsview SVP Paul Nolte discusses why the U.S. central bank will influence markets more going forward, and why they can’t seriously raise rates.
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Kingsview SVP Paul Nolte discusses a shift away from technology and the definition of good value in the markets. He also talks about a possible Fed taper and what that might mean for interest rates.
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Program: Your World with Cavuto
Station: Fox News Channel
NEIL CAVUTO: You like telecommuting or just not being in the office? Well, apparently a lot of your bosses, a lot more companies are saying they’re fine with this continuing in some cases for another month or so past the September promised return to work to as well to twenty twenty two January, February, you name it. Welcome back, everybody. I’m Neil Cavuto and focusing on companies that are now allowing their workers to keep doing the virtual thing virtually, right? Well, for months, maybe quite a few months to come, the implications of this was Scott Martin, family expert, readers of the financial and other markets. Kimberly, the message from the companies is it seems to be working for us right now. We’d prefer in person, but now we’ve got these spikes in cases, the uncertainty about mass, what to do. So keep doing what you’re doing. What do you think?
KIMBERLY FOSS: Yeah, it’s just difficult, Neal, I understand that they want to be safe and they want to do the right thing, but at the same time, eventually we have to go back to work, because the bottom line is just the quality of work, the time it takes to get things down. I can tell you in my own practice, when we try to get software service, you’ve got the lady on the other end trying to help us. But she’s got the screaming Mimi in the background. And the bottom line is it takes us four phone calls for phone calls to get what I could have done with one person in the office focused on what our situation is, which then takes me more time, takes my employees more time, it takes more cost. I can’t be as profitable. That’s the end of the story. We need to make a profit.
CAVUTO: OK, you sound like a workaholic, and we’ve got to talk about that, because that’s a separate issue for you. But let me let me get to you, Scott. All kidding aside, these same companies are saying on the flip side of this that, yeah, we’ll let you continue working for them depending on where you work. We’re going to cut your pay. Google has already hinted that maybe pay cuts of up to 10 to 15 percent because you’re not commuting, you’re not as
expensive a local. And so why should they pay you that much? What do you think of that?
SCOTT MARTIN: It’s interesting because that’s kind of been the dark side of this option of how much we care about you as an employer. It’s like, yeah, you can do all this cool stuff, work from home, work by the pool, you know, take the dog out and do the conference calls, you know, on the street. But, oh, by the way, you’re going to get 30 percent less. I’m going to cut your other benefits, too. And that’s the goofy part of this whole thing. And Kim touched on it, getting back to the regular economy and the regular style of work. I mean, we’ve got an office here of about 15 people and we got about half of those folks back in. And it, myself included, think about when you’re going to work on a daily basis. You’re going to the bar, to the restaurant, to the dry cleaners. Yeah, because, like, this suit doesn’t clean itself, by the way. And that’s usually in that order of which I’m doing things. And you’re not going out spending money, you know what I mean? You’re not stopping at places along the way where you’re creating economic activity, you’re staying home, you’re staying inside, and you’re not going out. And you’re not generating kind of that economic growth, that economic activity that we’re so used to that the markets need, I believe, to stay at these levels.
CAVUTO: You know, I look at the markets, though, Kimberly, and, you know, the Dow and S&P were up again today. That makes, you know, four days in a row of records for them. So they’re panicking about it. They’re not showing it. And I’m just wondering whether it’s their belief we’ll get through this. Everything’s going to be fine. The earnings certainly have been fine through the pandemic. They’ll get even better the more even if it slowly pull out of the pandemic and they just see everything half glass full to you.
FOSS: Yeah, I think that they’re shrugging this Delta variant off and by the way, Neal, this is not the only variant that’s coming out, right. They’ve got variants out to two thousand twenty three. So interesting how they know that. But that’s another subject. But at the same time for. You just just a little area. You’ve got four point five truly trillion dollars on the sidelines to throw in money market and money goes towards best reward and is not getting rewarded in money market account. So you are going to see more money committed to the market. I think this is going to be a slight pullback. But what we pivot, that’s what America does so great and entrepreneurs do so great, they pivot,
they’ll figure out a way at the front door is locked. We’re going in the side door, the little door in the basement. We’re going to get in somehow some way. And that’s. What about capitalism and the investor?
CAVUTO: Well, I’m going through the refrigerator door myself, but I understand what you’re what you’re getting out there with this migration that’s going on. Guys, I want to thank you both very, very much.
Program: Making Money with Charles Payne
Station: Fox News Channel
CHARLES PAYNE: All right, so all week we’ve been talking about ways that you should own the future, part of the future, of course, includes how we’re lured off of our sofas and to certain industries where businesses are somewhat struggling. The answer, of course, is always going to be technology. I want you to check out, for instance, this Taco Bell define now they call it that because it defies the norms and it will define the future. It’s got a very small footprint, but technology actually allows it to serve more customers. It looks so cool. And imagine you go to a late Friday night after you had a few. Right. And then there’s this Nike store in Seoul, South Korea. This is amazing. They call it the Nike Ri’s. It’s designed to merge digital and physical for what they call a unique, immersive shopping experience. It’s all cool stuff. It also means really big money for investors if you know where to look. I want to bring, in King’s view, wealth management. Scott Martin has got a lot of this. Is that radio frequency ID stuff you see with those Amazon grocery stores and you go in, you put everything in a basket and you leave. Right. How can the audience get a piece of that action?
SCOTT MARTIN: Yeah, and it’s action that’s going to happen a lot going forward, Charles, just as kind of, I guess, the post pandemic retail environment emerges. And just as an aside, any any time you talk about Taco Bell or weave that into a stock story, you’ve got my attention. Love Taco Bell, hard core. That’s Yum Brands, by the way. Here’s RFID technology, though. RFID technology, though, that looks good to us. Charles is in Zebra Technology’s great, fundamentally strong company, has rallied a lot in the last several years, even pre pandemic, just because these guys are dominators in the space. So zbra is one that we actually like here to further take advantage of the trends going on.
PAYNE: I’m going to toot my own book for a moment, I have an entire chapter dedicated to Zebra in my book, Unstoppable Prosperity. Folks, you have to read how I discovered Zebra, how you can discover things every single day. Connect the dots and you can make a fortune. I digress. Let’s talk about these retailers and restaurants themselves, though, because I got to tell you, I think these retailers, a lot of them are going to survive. The stocks are already acting fantastic. A year ago, everyone hated Coles. I’ve seen upgrades on that. Everyone hated a lot of these other names. Or what are some of the names you like there, Scott?
MARTIN: Yeah, a lot of fun, a lot of ones that were it was like TJX, which is one that we own and we have owned that for a while. Charles, a couple other names, I guess I’m a little embarrassed to talk about because they’ve been awesome, but they were funny at the time. I mean, we could go back in the tapes, you know, when we were talking about this retail re-emergence. How about Darden Restaurants? How about Bloomin Onion? Yeah, Outback Steakhouse. And those guys like those are companies that have really done the following, Charles. They still have the room dining. They still have the traditional kind of dining experience, but they have totally shifted their business lines to the pickup in the carry out and so forth like that. They’ve got good food as well, like Taco Bell. I’m saying that kind of with a straight face here, but that’s food I like also, believe it or not. So those are areas, too, and restaurants that I still believe are set to emerge. And they’re ones, too, that you need to take advantage of when you see some pullbacks like we have in those stocks in the last couple of months.
PAYNE: All right, so we talked about the future, let’s talk about the past, this Sunday will be the golden anniversary of Nixon taking us off the gold standard. You’re a gold investor. You think it was a mistake? I mean I mean, obviously, I think it’s too late to ever go back. But if we could, would you.
MARTIN: No, I wouldn’t, and I think we’ve got to be grateful that we’re not. And yeah, you know, I’ve been called Goldmember on Twitter and on on Facebook and Instagram because we love gold, you know, like like Austin Powers used to say or the act used to say, Mike Myers would say, as he was gold member in the movie, because gold to us has value in the sense of Charles. When we invest our clients money, it’s not stock and it’s not fixed income. It has its own kind of correlation value amongst traditional asset classes that many investors hold. And therefore, that’s why I think gold going forward, it’s going to be a great addition to your portfolio.
PAYNE: I’m going to go back a little further and talk cool real quick. It’s up one hundred fourteen percent. I think it keeps going in part because of China. Is there a way for the audience to make money there?
MARTIN: Sort of you know, it’s funny with Coal, I don’t have the onions, let’s say, to jump into coal here, given the crazy move. I mean, you look at coal prices, like you mentioned the last few months, it’s wild. I actually believe kind of the forgotten peace to this whole energy scenario is a natural gas. Cheaper, easier to get. There’s more of it. So UNAGI is an ETF that tracks the futures price of natural gas. It’s trailed coal, its trail, this whole move. It’s the hated kind of partner, if you will, or the hated kind of alternative. And that’s when I look at as maybe playing catch up here.
PAYNE: Scott, you gave us a lot to chew on. Pun intended. Have a great weekend, my friend.
Kingsview SVP Paul Nolte discusses the lack of movement in the market this week, inflation, the low-interest rate environment, and the likely path of reducing the amount of treasury purchases. He also talks about the bull market for stocks, and whether a correction is coming.
Program: Making Money with Charles Payne
Station: Fox News Channel
CHARLES PAYNE: Now i’d like to bring up Fox Business contributor from Kingsview Wealth Management, Scott Martin. Scott, I want to pick up on that conversation with gold. You’ve been in gold here. You talked about being long. It it’s kind of stalled a little bit. Are you, though, convinced it still has the ability to be a hedge against inflation in a store of value?
SCOTT MARTIN: Yeah, and Charles, we also like it because it’s not a bond position and it’s not an equity position. So if you’re adding gold to your portfolio or looking to do so, I think you get a check out the correlation value that it presents to a portfolio. Because you’re right these days, with so much uncertainty ahead, both in the economy and what with D.C. and with the Fed is going to do going forward, as you were just discussing, gold can actually come in handy in either of those times when either we’re stimulating or pulling back stimulus because you’ll see people flee the volatility of the equity markets and go into gold as a solution.
PAYNE: You’ve expressed at least earlier this year, you expressed some concern about the junk bond yields, you were worried about how low they were, they’ve only got lower. What does this say? I mean, what’s the message here and what kind of adjustments, if any, have you made because of this in your portfolio?
MARTIN: Well, we still own junk bonds, but you’re right. I mean, the yield on junk bonds is meager at best. And so it’s just a liquidity rush, really, Charles. I mean, people investors are out there seeking any yield they can find anywhere in the bond market. So that to me is another kind of indicator of things, just getting a little bit overcooked here on the bond side. So when you’re looking at yields, seeing the 10 year Treasury, as you were just talking, I think we’ve probably seen the lows or come pretty close to him for the year and we expect yields to start rising here in the next few months.
PAYNE: Last time I saw you, you were getting a little bit more aggressive on the equity side were, you know, by the way, where where are you most concentrated, your biggest investments yet?
MARTIN: Consumer discretionary, mainly, Charles, as the reopening keeps happening, the consumers in the best shape they’ve been in many, many years. So we like the consumer discretionary names, the Amazons of the world. But so far, yes, we’ve been adding to things like I mentioned last week, that drop on, say, good news. We’ve had a slew of earnings reports come out that have been relatively good. Things like Apple and other technology companies have pulled back some. We’ve been adding on those dips because the long term story is still in place for a lot of these companies. And on short term weakness, that’s when you got to get in and add to those positions.
PAYNE: Hashtag buy the dip, I’m with you, my man, I think people are nuts. I don’t know who’s selling it. It’s just the computers, the algorithms. But if you are selling Apple and Amazon and those kind of earnings, you know you’ve lost it. Hey, Scott, thanks so much. Appreciate it.