CIO Scott Martin Interviewed on Fox Business News 9.17.21

Kingsview CIO Scott Martin discusses the amount of options in the market, using pullbacks to fortify positions, and the upward sloping yield curve in financials.

Program: Making Money with Charles Payne
Date: 9/17/2021
Station: Fox Business News
Time: 2:00AM

CHARLES PAYNE: Meanwhile, there’s an icon of dichotomy here between plunging investor confidence in amount of cash that’s gushing into the stock market. Individual bearishness that’s plunging. And of course, down at twenty 22 percent bullishness, rather the fear gauge moving closer toward extreme fear. So how can we come to grips when we’re personally growing fearful, but you still want to stay in this market? Believe me, I know it’s not easy. So let’s bring in our market experts Allan Boomer, Scott Martin and Mike Lee. You know, one of the reasons I’ve been bullish beyond the fundamentals is all the cash on the sidelines. Global investors took sixty two billion out of money markets. They put fifty one billion into stocks, forty six billion of that into US equities. So Mike, is this a reason you think for people to remain bullish?

MICHAEL LEE: Absolutely, Charles, I think any debate should be brought. I think the amount of cash on the sidelines is staggering. You have four and a half trillion dollars in money markets. You have over 700 billion dollars of buybacks amounts. And just keep in mind, OK, when that Fear Greed Index is up in the 80s and 90s, that’s what you want to sell when it gets down here. This is where you want to buy, and now it’s easier for me to say it than to do it. But that that historically proves the way it is when everyone’s calling for a correction. That’s where you want to be a buyer.

PAYNE: You know, Alan, you were a VP at Goldman Sachs and then you started your own firm in 2013 wasn’t a really great time, right? Most people hated Wall Street back then. So what’s the secret for you when you get investors to remain calm invested, particularly when they become fearful or distrustful?

ALLAN BOMMER: I hate to say it, Charles, but you got to tell them to turn the TV off, sometimes really focus on. Focus on the long term, you know, why are you investing in the first place? Is it because you want to know every minute, maximize your wealth or is it to really maximize your wealth over time? What are the things that you’re looking to achieve? Like, do you want to retire one day or leave money for your kids? Like days like today, weeks like these last few weeks aren’t really going to matter in the long run. You’ve got to keep folks focused on the big picture, right?

PAYNE: Scott, you know the amount of options. I want to get back to this old triple quadruple witching thing, the amount of options in this market. It’s got a lot of people concerned right there saying it’s really starting to skew underlying share prices. Also, it’s making people less respectful of risk. What are your thoughts about that?

SCOTT MARTIN: It’s wild, Charles. It’s definitely kicking up volume. I think it’s an opportunity like the guys have already said. I mean, any kind of drawdowns that we see because of options expiration or people say, repurposing or recalibrating their portfolios. If you’re getting pullbacks in names that you like, say, like airlines or restaurants, anything tied to the consumer, you’ve got to use those pullbacks or there’s triple which are not to buy in and fortify your positions.

PAYNE: So then let’s talk about resolve, market resolve again, for the most part, has been with us since 2009 on full display march of last year. This year, the S&P 500 has been holding that 50 day moving average like a champ, not just holding bouncing off it like a trampoline. So, so, Mike, you know, you’ve expressed a tremendous amount of bullishness. What happens if the 50 day fails and we start to accelerate to the downside?

LEE: Yeah, look, I don’t I don’t see any sort of acceleration from that, and again, I would be I would be a buyer on an I’d start start selling fixed income or finding other assets in other places to put more money to work. There’s so much cash on the sidelines, combined with the fact that while the economy, while the rate of change may be slowing, we’re an expanding economy. This is a bull market these last four years, not months. Markets don’t sell off because of valuation. There needs to be a catalyst for there to be a meaningful correction. And I’d say the more selling we get, the less likely the Fed is to be active, which in my mind is the only threat to the market at this point.

PAYNE: I do believe the Fed is hostage to the stock market, I think they’ve created a monster they will not be able to control other than keeping it going. Hey, let’s switch gears. We’ve been talking about stocks, but don’t look now. But that 10 year yield is really starting to build some momentum to the upside is right on the cusp of a big resistance point. Now, Scott, I know you like the financials. You talked about them. Obviously, they should do well as these interest rates are going up. Is this one of the areas to be in if we start to really break out?

MARTIN: I think so. Charles and we own JP Morgan and Citi. We have for about a year now, we like the upward sloping yield curve, as you pointed out. Also, the fundamentals on those two stocks are very good. So if you’re looking to expand your portfolio, looking at financials, I think those are the two top names. But obviously you can’t probably go wrong too much with Wells Fargo, given some of the pressure it’s had recently. But financials going forward here are going to take advantage of that upward sloping yield curve as the banks benefit from net interest margin expansion.

PAYNE: And, of course, if Elizabeth Warren gets her way, the by Wells Fargo, you end up with two companies for the price of one. Hey, Allan, at one point, were these higher yields change the way you’re investing right now?

BOOMER: Great question. I mean, I also like the banks, I like the regional banks as well as kind of the megacap banks, you know, you talk about JPMorgan. They. Made a lot of really powerful portfolio of businesses inside of JPMorgan like Citizens Financial, but you know, rates are going higher. I don’t think they’re going meaningfully higher. Like I predict in the next year, you’ll probably see a 10 year around 175. Like, that’s not enough to really, you know, turn us away from anything, you know, rates. I think rates will go higher. It’ll be a grind higher.

PAYNE: That’s like predicting the Knicks. That’s the playoffs, so I’m with you on that. OK. Let’s move on to gold because I got to bring this up. We talked about inflows. Well, guess what? Thirty seven million dollars winning the gold. It doesn’t sound like a lot, but that’s the most in five weeks. And getting it back to you for a long time, you’ve been telling us you got to be in gold. But is it time to throw in the towel in the sense that this is your best hedge against inflation?

MARTIN: No, not yet, Charles. I mean, we like gold and we have for many years because it’s not stock and it’s not fixed income. You mentioned the inflows on gold. It’s actually had a pretty rough week given those inflows. But the reality is this as I think interest rate starts backing up. I think as we see like maybe a little bit of a taper, actually an inflation that actually might help gold here. So we’re actually adding to our portfolios to build out that position a little bit higher.

PAYNE: Right, let’s talk about what you’re buying, Mike, because you got us pumped up, my man. We’re in a secular bull market. Nothing’s going to stop us. May hit a speed bump here and there. How do we take advantage of it? What’s new in your portfolio?

LEE: Hey, Charles, I’m on the other side of this. Interest rates, I don’t believe. I think interest rates are going to back up here. Maybe we get a little bit higher, but then they eventually rally like we’re in a low growth, low inflation world. So I just added some utilities on that trade just just as a low rate trade, as a kind of conservative anchor to my equity portfolio. And I also added a big position in REITS, I think the right sector, it’s done really well, but I think it’s going to be one of the last legs of this recovery. And I think the low lower for longer, low interest rates really help them lever up and rebuild themselves.

PAYNE: All right. You know, utilities, I mean, you’re a brave man. There’s one utility I like next there, and I tell everyone when Biden was elected by that stock, it did terrific under President Obama. All of these things are trying to do means cash in their pockets. But it’s a tough one, although defensive halves look pretty good. Over the last few weeks. All right. Real quick. I think I’ve gotten enough time, 30 seconds. And the last time you were on, you mentioned the FedEx. I don’t think we’ll get a chance to talk before they report. I think so. So stay the course there.

BOOMER: I love FedEx. You know, it’s linked to e-commerce, all the stuff that you ordered, it comes to your house. A lot of it comes from FedEx. UPS is another great name, but FedEx trades at a 24 percent discount on a valuation basis to two ups. So whether their earnings are good or not, and I do think they’ll be good, I think FedEx is a great position on.

PAYNE: All right, gentlemen, let’s leave it there. Alan, Scott and Mike, have a fantastic weekend.

8:10

CIO Scott Martin Interviewed on Fox Business News 8.13.21 – Making Money With Charles Payne

Program: Making Money with Charles Payne
Date: 8/13/2021
Station: Fox News Channel
Time: 2:00PM

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.

4:49

CIO Scott Martin Interviewed on Fox Business News 8.5.21

Program: Making Money with Charles Payne
Date: 8/5/2021
Station: Fox News Channel
Time: 2:00PM

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.

2:24

CIO Scott Martin Interviewed on Fox Business News 7.30.21

Program: Making Money with Charles Payne
Date: 7/30/2021
Station: Fox News Channel
Time: 2:00PM

CHARLES PAYNE: All right, I want to bring in Wells Fargo Advisors senior VP Mark Smith, along with Kingsview Wealth Management CIO Scott Martin. Mark, let me start with you. I know that you’re mostly conservative. I think you’ve been largely in value. How do you see the rest of this year playing out? Because that’s been a sort of a tug of war kind of thing, particularly with all the different inputs in this economy.

MARK SMITH: I think the rest of the year is going to do as well as the last six months, if you’re looking at value specifically, let’s see what happens. The sectors, right. Financials are doing 20 percent plus since January. You’ve got energy. Last time I was on with you, Charles, I recommended energy to thirty five percent since January as a sector. And then and then you’ve got communications up 15 percent. Real estate in the value space is up 25 percent since January. So are any of those sectors going to go down? Yeah, if we go back to the lockdown. But the last time I checked, when I went outside, everyone’s out enjoying the summer. They’re taking advantage of being out. So those are vaccinator are taking advantage. And I think that’s going to continue. You’ve got Merck that you’ve said they’ve got a new pill that might be released in October. That would be a great treatment for it as well. So that a lot of great news. And so I think the reopening place would be great. I think a lot of the value sector are going to do very well in that environment and continue. I don’t know so much for growth because, you know, we’ve had at all time highs for all these growth stocks. And if we go back to being back outside, I think growth takes a little bit of a hit because we’ve been hanging out in these tech stocks the last year and a half. Staying at home.

PAYNE: Yeah. And we see we see a little bit of that with Amazon today. Scott, you started the year conservative. You went to growth, I will say July. As of yesterday, growth was up five percent versus like, you know, less than one percent for value. It does go back and forth. Where are you right now? Because you did start off a lot more conservative. You got more more aggressive. You were right. Are you staying the course?

SCOTT MARTIN: Yeah, we are. But realizing, Charles, there’s going to be a lot of push and pull here into the end of the year. I mean, a lot of the easy money I think has been made. Now, you’re right, a super spending impetus by the government, also by the Fed, as well as far as stimulus they’re providing. And still this Delta variant that’s out there that’s kind of screwing with psyche, let’s say, you know, does allow, I think, things to stay relatively stable, let’s say supportive from the Fed and the government standpoint. So that’s going to keep the market floor there. But the reality is this a lot of what we’ve seen happen in the market with this rebound in growth, the great numbers that we saw in earnings this week was already factored in. And so what’s this next impetus that’s going to push us over the edge either one way or the other way? And I think it’s probably going to be this back and forth where you’ve got it buying things that are down. We talk about this a lot, Charles. You know, stuff like UpWork today. We picked up for our clients this morning. It’s already rallied about five percent off the bottom. Amazon, as you mentioned, Squares down three percent today. Stocks you like over the long term, stocks that will benefit from either a down area or lockdown situation or a non lockdown situation. When those things pull back, you’ve got to buy them. Apple earnings Tuesday after Tuesday, this week. Great buying opportunity. It’s up since then. That’s where you got to look for as an investor.

PAYNE: I want to get the view from both guys. The S.E.C. this morning, they put a hold on all these IPOs coming out of China. We see where the KWEB, which is a Chinese Internet stocks, have been crushed. Our names, conversely, have done well. Is that a place, Mark, that you would be looking to buy weakness? Obviously, you know, I don’t know what’s going on with the President Xi over there and what they might do to reverse some of these actions. But if they do reverse them, you might think some of these names will pop.

SMITH: Listen, I’m telling my clients that there are going to be in China, they’ve got to be with the companies that have really changed the paradigm. You’ve got companies that are as big as Amazon and as big as Uber, the Chinese virgin is over there. I don’t think anyone’s going to start hailing cabs on the same street in Shanghai. I think so.

PAYNE: So you saying like a DiDi or the Alibaba and the…

SMITH: Yeah, absolutely. I mean, these

PAYNE: Things are not inspite but buy the weakness.

SMITH: Absolutely, the transformational companies, I don’t think we’re going to go back to picking up packages from the front door stores that get delivered. So I think these companies, even though they’re having a pullback, I’m telling my colleagues, my my clients are dollar cost averaging some of these names because they really aren’t going away no matter what Xi’s doing over there.

PAYNE: Hey, Scott, let me get your thoughts on buying the Russell the Russell two thousand and you know, it’s been a juggernaut, but more recently, let’s call it the last four or five weeks, it’s been weak. It’s the best performing equity index today. I think it’s oversold. I think it also benefits from a weaker dollar. Are you a buyer there now?

MARTIN: Yeah, Charles, definitely. It’s oversold versus its large cap brethren. But, you know, the Russell hasn’t performed very well versus the large cap stocks as the breadth has thinned out. And that’s been kind of disappointing because in times when the market had had thinned out in previous years that Russell had stepped up. So for us to get back into small cap here, which we have since sold, I’d like to see that firm up a bit, Charles, which it probably will into the end of the year, because I think there’s some buyers in there. But at least for now, it still seems like there’s a lot of weekends hanging out.

PAYNE: All right, Mark Scott, thank you both very much, great information and we’ll be we’ll be watching and trying to make some money from it.

5:30

CIO Scott Martin Interviewed on Fox Business News 7.5.21

Kingsview CIO Scott Martin discusses market expectations, employment numbers, and earnings from the S&P.

Program: Making Money with Charles Payne
Date: 7/2/2021
Station: Fox Business News
Time: 2:00PM

CHARLES PAYNE: Dow. Wow, stocks rocking in the first half of the year with investors shaking off those price spikes at the store. So are we in store for more green? Let’s get the read from our market gurus, Scott Martin, any Gábor and Melissa Aamot. Scott, what’s the second half look like?

SCOTT MARTIN: I think it’s going to be bumpy, Charles, and it’s look, it’s great how we finish the first half of the year. There was a lot of anticipation, a lot of sentiment increase and frankly, a lot of deliverance on the part of the economy. But now the expectations are high. We’re expecting a big economic reopening. We’re expecting a lot of folks to go back to work and oh, by the way, be productive. And we’re expecting earnings to deliver from the S&P. Five hundred companies. So for my money, I think it’s more of a say watch and be more careful than we were maybe in the first half of the year just because of all the expectations that are out there, of which one or two of those is likely to fall flat, in my opinion.

PAYNE: You know, Melissa, what’s really interesting is I don’t know we’ve ever seen it. Well, once that we have five quarters in a row of five percent plus gains in the market only happened one other time in nineteen fifty-four, the rest of the next year, it was up twenty five percent. Can lightning strike again?

MELISSA ARMO: Well, I will say this, I think the summer is going to be bullish. I think the next two months we’re going to continue to be on a tear and many people are expecting that we’re going to fall and it’s just not handling. So shorts are getting trapped if you’re in the market long term and just ride it out is what I say. I think the second half of the year in the fall, though, it’s a little harder to predict what’s going to happen. God forbid something happens with this Delta variant that they’re talking about with Covid or any kind of shutdown.

PAYNE: Yeah, no doubt there’s a whole lot of things that normally investors don’t have to worry about exoticness events, things on the horizon, things bubbling up, the Federal Reserve, it’s hard to navigate it. But what do you think’s going to happen?

EDDIE GHABOUR: So, look, it’s been a heck of a six months, and I guess the reason why my Twitter handle is common sensible is when you’ve had a huge run up, it never hurts to take a little bit off the table. So our playbook is we think July, we’re going to continue to see a bullish trend upwards because we’re going to refer to that as our catch-up trade, because a lot of people have missed this move. But Jackson Hole in August has our attention and we think that’s when you’re going to start to see the markets really sell off. And we could see a pretty good sized 10 to 15 percent, because I find it hard to believe that by August, the Fed is going to continue to ignore the inflationary pressure that’s going to hit. It’s going to be higher than they’re anticipating and leading the market to believe. And they’re going to have to change your language and start pivoting. So we think that’s going to be the star of the short term correction that we will see and then we will get hopefully that Santa Claus rally that we’d like to see in a bull market. So 12 months out, we like it, but that’s our playbook here in the next six months.

PAYNE: Scott, you mentioned earnings. I think earnings are going to be phenomenal, like I think this last quarter was one of the best earnings periods ever. I think the next one is going to be better. And I hear what everyone’s saying about the Fed, but they keep fooling everyone, I think Jay Powell is going to ignore the data. What happens if we keep this momentum going? Do you want to guess at where the top is going to be?

MARTIN: Well, Jay Powell has to ignore the data, Charles, because that fits his narrative and he’s right. I mean, come J-Hole or the Jackson Hole meetings, really, I mean, he’s going to have to ignore the inflationary data that’s right in front of his face. As far as the earnings go, though. I’m with you, Charles. I’m expecting great earnings as well, but so are a lot of market participants. So is the market action. So unless these earnings are getting basters, unless they blow the doors off, I think the market might be ho hum.

PAYNE: All right. Let me switch gears here, folks, because more states over the weekend dropping those extended unemployment benefits before they run out in September. Melissa, do you think it’s working? Do you see any evidence that people are now going back to the labor force?

ARMO: As far as New York City where I live, it’s not happening. Yes, I mean, it’s a big, big problem in a city like New York where you have regular people that you need to do the jobs, the delivery people, the people in the retail stores, the people in the salons. People are not back to work. It’s difficult to get a cab. Cab drivers are not even working about 15 percent of the cabs of running the elections in New York City. We have to get people back to work because people are not working. Then it takes longer to get goods, products and services. If you’re ordering furniture or anything that you want right now, even if you call in the phone you want to pay a bill, you’re on hold forever. Why? Because people aren’t working. They’re not handling the service isn’t. Their productivity is low. People got to get back to work.

PAYNE: You know, Eddie, I say this the greatest jobs market ever, and it’s being met with the greatest general strike ever. I mean, it’s amazing. What do you think? Is it going to we’re going to get any relief. People going to go back to work.

GHABOUR: I think they are looking at jobs data. Last week, we started to see an uptick in the states that changed their stance on the extra unemployment benefits. So I think as they start to roll off, you will see an uptick. But look, the labor cost is a big issue, which is another big inflationary thing that I think the Fed is missing. My 14 year old just got his first job. He’s getting paid fifteen dollars an hour to scoop ice cream. I mean, let’s go. I mean, it’s insane what the labor market is going to look like moving forward. So it’s going to be a small, slow recovery. But I think you’re starting to see that trend happen already in a short period of time.

PAYNE: Fifteen dollars a day would have been phenomenal when I was 14. Any Melissa, Scott, thank you all very much.

5:36

CIO Scott Martin Interviewed on Fox Business News 6.4.21

Kingsview CIO Scott Martin discusses data as it relates to inflation, trimming positions in certain sectors, and putting cash back to work in areas such as technology and utilities.

Program: Making Money with Charles Payne
Date: 6/4/2021
Station: Fox Business News
Time: 2:00PM

CHARLES PAYNE: I want to bring in now the money guys. Hey, David Dietze with us. Scott Martin’s with us. All right. Equity’s going much higher. Bond yields are plunging. The fear index is plunging. Scott, so how does this report change your way of thinking? Maybe your positioning with respect to your stock positions

SCOTT MARTIN: It doesn’t really change anything for us, Charles. We’ve actually been using some of the strength in some of the recent economic data to pare back just some of the winners, man, that we’ve talked a lot about on the show here, financials, energy and materials. And it’s not that we’re bailing on those positions, but just trimming them back, taking some profits off the table, because I think a lot of this data, as you talked about with Constance there, is starting to get baked in the cake as far as how summer is going to go. And therefore, I think the market’s going to likely be disappointed by better and better data as it relates to inflation as well.

CHARLES PAYNE: Today, energy and financials, those are two sectors that are down. Almost all the rest are up. Are you putting that money to work somewhere else?

MARTIN: No we’re keeping it in cash for now, Charles, and then looking to maybe put it back to work and some things that fall more over the course of the next several weeks, which my guess is going to be in the technology space, maybe utilities as well.

CHARLES PAYNE: Hey, guys, I want you to check out this headline, you at home as well, the Fed and inflation suggest the bubble is forming now. You know, a lot of people read that, right? They got out of the market when they said it. Except the problem is that was from October 2013 when they got out of the market. Well, subsequently, they missed one hundred thirty six percent move. He been a three hundred percent move on the Nasdaq. One hundred, David Dietze. What’s the moral of this story?

DAVID DIETZE: Well, market timing does not work. And before you are all inclined to take a big move with your money, think who are you going to be selling to? What are they thinking about? Go back to your goals. Historically, this market has outpaced cash and fixed income over the last hundred years. There’s always going to be some sectors that are overpriced, but conversely, there’s always going to be some sectors they’re underpriced. Back then, technology was very cheap. We were on the cusp of big tech revolution. Should never want to do one thing with all your money for every bad headline. There’s also a good headline.

PAYNE: Yeah, the moral of the story is ignoring the headlines. OK, we’re looking pretty good here, Scott. And know you’re sitting on some cash my man, what will it take for you to now look at growth? Which I believe is the new value.

MARTIN: Yeah, it could be, and it got to a level where there is some value in growth, Charles. I mean, we just are looking for pullbacks. We’re looking for entry points. We’ve had those in Zoom. We’ve had them in DocuSign, we’ve had them in Teladoc, Zwillo as well. So just looking for four points of interest or points of entry that are just basically oversold conditions. The other thing, too, I mentioned the cash earlier, Charles. You know, I love Gold man. We’ve been picking up gold on the lows in March and April of this spring. A lot of people called us crazy as Bitcoin and Ethereum are falling out of favor because of regulation and taxation. It looks like gold is back in favor and looking to be that alternative asset class that it’s always been.

PAYNE: Yeah, gold right around nineteen hundred and a strong stealth rally. David what are some of the things you’re doing? What are you focused on right now?

DIETZE: Well, so we love growth too but I would kind of turn it around. I don’t want to look at the labels on stocks. I want to look at the companies. They’re going to show the greatest earnings per share growth. And there I come back to the cyclicals and the value plays. The energy stocks are leading the brigade in terms of year over year growth. Financials are going to come up next. And that’s where the growth is, at least to the end of the year. The secular growers did a great job, but now they’re year over year comparisons aren’t going to look quite as good. of course, unfortunately, I do think we’re going to see higher interest rates. Who does, who benefits from that? Who is hurt? Well, certainly the value plays where there’s more earnings today. Greater dividends today are more resilient in that kind of situation versus growth. Companies have long, longer dated things. So I would stick with the value in financials. A slight overweight. They’re continuing.

PAYNE: All right, so you see this whole inflation thing still bubbling up at some point today, notwithstanding David Scott to the best. I appreciate you guys. Have a great weekend. We’ll talk soon.

5:49

CIO Scott Martin Interviewed on Fox Business News 5.27.21

Kingsview CIO Scott Martin discusses the housing market and President Biden’s six trillion-dollar budget with its higher capital gains rate.

Program: Cavuto Coast to Coast
Date: 5/27/2021
Station: Fox Business News
Time: 12:00PM

NEIL CAVUTO: Ray Wang is here to help figure it out, Scott Martin here to help us figure it out as well. Gentlemen, good to have you. Ray first to you on what’s happening in California, because, you know, demand is demand. And even in a state that has high taxes and all these other issues, it’s not hurting real estate. In fact, it may be helping it. I don’t know. But what do you think of that?

RAY WANG: Well, what’s going on is the millennial migration from urban cause, they’re having families, they’re getting married, they need a lot more space. The second, though, is interesting. This is the supply issue. There is a war. There’s a war in the American dream, which is the single family home. And there’s everything being done to get rid of single family zoning, which is driving up what people want, which is single family homes. No matter how small they are, people want a house and a yard. And then the last piece is the unions are tacking on tons of legislation on bills to actually require union labor when we’ve got a labor shortage for construction. So that’s driving up the cost. Those three factors.

CAVUTO: You know, you hear anecdotal evidence to Scott, hopeful homebuyers offering anything and everything, from parties to the seller to incentives and tickets to baseball games just to give them an edge here. It sounds a little frothy to me. It’s more anecdotal than it is nationwide. Hardly a rule of thumb. But does does that worry you, that nature of this?

SCOTT MARTIN: Well, if that stuff is out there, Neil, I’m going to sell my house later today because I love parties and I love ball games. So, look, it does show you, though, how crazy it is out there to Ray’s point as far as how much this battle, I think, was the word he used is going on between buyers and sellers. Now, in the case of California, I think, as was pointed out, this could be a kind of a concentration issue, too, of certain areas being hotter than others. I think somewhat real estate is lagging in some of the price corrections are likely to happen in California going forward when things happen. And let’s say the governorship doesn’t turn over, as some of us expect it to in politics, don’t change. But, yeah, you’re right. I mean, there are a lot of tactics going on now in the seller’s market or the buyers market, I guess, really where they’re trying to get any edge possible. I mean, how many times are you hearing from friends or colleagues that they’re buying homes before they even come on the market on the MLS because folks go in and pick off a pocket listing before they even listed publicly?

CAVUTO: Yeah, I think that’s now counting for close to six percent of all sales that they were never even got to listing. Ray let me ask you a little about something else going on in Washington in this environment, not only all the spending, but all the taxing with it. And part of it was Janet Yellen, the treasury secretary, talking about beefing up the IRS so that they can get more tax dough out of folks. Listen to this.

JANET YELLEN: {CLIP} The IRS is ineed of additional resources to over the next 10 years, the American people could see roughly seven trillion dollars fall through the cracks of our tax system. Why? Because many of the country’s wealthiest taxpayers do not pay their full tax bill and the IRS is not nearly staffed up enough to ensure compliance.

CAVUTO: All right, my immediate reaction that Ray, let’s say, even tripled the budget for the IRS to thirty plus billion dollars, you’re justifying it that it can get you seven trillion dollars. Sign me up for that if you can make that happen here. But I mean, it does have a bit of a stretch feel to it. But what did you make of that?

WANG: It is definitely a stretch. I mean, we need a fair tax system if we get rid of all the important incentives and all the kind of special rules and all the deduction favors, if you get a flat tax, we wouldn’t have this problem. People just pay it. I think the challenge really is we’ve seen the abuse of the tax system over the past 20 years by the government using that for going after political issues. That’s a big issue. But the challenge really is can we get to a tax system that’s efficient, that actually represents what it means? You’re getting the right amount of spending, the right amount of benefits we’re spending beyond our control. And so good luck. I mean, if you’re going after the crypto traders, maybe catch some things there might catch some things in

other weird deductions, but it is a big stretch. I think we should just get to a much more efficient flat tax system so that we can actually make sure everybody pays what they need and they’re not complicated or make a mistake by saying, oh, I made this deduction instead of this other deduction because I didn’t understand it.

CAVUTO: You know, Scott, I’d be remiss if I didn’t mention this other development on the president’s budget. He’s going to sort of outline officially tomorrow, but we’re getting hints of it today. Six trillion dollars, the biggest budget we’ve ever seen in the United States history. But there’s an interesting wrinkle to this of reports that a built into that budget is the higher capital gains rate taking effect in April. In other words, if you wanted to sell your big winners and this goes through, it’s too late, you’re going to be taxed at that higher rate, at least richer investors are, which would be you. So how do you feel about that?

MARTIN: Hopefully me, if things continue to go well. Look, low hanging fruit to me in the tax system right now, Neil, is the capital gains rate because the stock market performance has been really good thanks to, by the way, the large and small businesses out there know, thanks to the government and all their help that they’re providing. But the administration sees it as low hanging fruit. So no shocker there that capital gains are going to be taken up. With respect to these wrinkles in these numbers. I mean, the numbers are shocking, Neil, more than World War two, cost inflation adjusted, by the way. That’s frightening. And I don’t believe that number being as low it is for a second. We’ve seen these numbers from D.C. The new administration just inflate rapidly over the course of the last, you know, one hundred twenty days. So the reality is we’d be lucky if the number is that low going forward is what they’re going to spend going forward. I think it’s going to be a lot higher and we’ve got to be ready for it.

CAVUTO: You know, you’re right about that, usually it starts out low, even eye popping, as the first numbers are, because they end up getting much higher. We’ll keep an eye on it, gentlemen. I want to thank you both very, very much.

6:13

CIO Scott Martin Interviewed on Fox Business News 5.25.21

Kingsview CIO Scott Martin discusses the global supply chain and the current administration’s effect on the U.S. dollar. He also talks about recent social media events and the intent of language.

Program: Making Money with Charles Payne
Date: 5/25/2021
Station: Fox Business News
Time: 2:00PM

CHARLES PAYNE: The evil, of course, these days could be inflation, it could be overvalued stocks, any dodginess development that could derail the economy. On that, I want to bring in our market pro – from Mayflower Adviser Larry Glazer also have got Kingsview Wealth Management. Scott Martin with me as well. Gentlemen, let me start with you, Larry. I know you’ve been concerned. I was reading some of the work you’ve done, even going back to 2018. So you’ve been concerned about inflation, but is it so pervasive? Right. Do you sense that it’s going to be so pervasive and enduring right now that the Fed will indeed be forced to derail this stock market?

LARRY GLAZER: You know, Charles, it’s a really good point and potentially the biggest risk to the stock market right now isn’t the economy. It’s not the reopening, it’s not even Covid. It may be Washington itself. It may be a Fed misstep. It could be higher taxes. Any of those things could potentially derail this. But I think more importantly, let’s play a little game here, shall we? And we’ll see how many times Fed talking head officials this week use the word transitory to describe the inflation that we’re all experiencing on Main Street every day. Charles, the proof is on the grill for Memorial Day. Look, let’s see what the price of chicken wings look like, right? That is, if you can get chicken wings, let’s see what the price of hamburger looks like that is. Maybe it’s going to be so expensive. We’re just going to eat the helper. No one’s going to take road trips. If gas prices go up, you’re not going to rebuild deck or your fence if lumber prices go up. So all those things are risk potentially. And we learn early on as you do not fight the Fed, if the Fed says there’s no inflation, it’s going to be good for the reopening. It’s going to be good for inflation. But you’ve got to be in companies. They have enough margin expansion. They can absorb that, pass it through cyclicals, industrials, materials, stocks and certain technology names that benefit from all the good things on the technology side that are happening today in this acceleration of innovation.

PAYNE: Well, if there no chicken wings, I’m going to be out down there protesting myself, Scott, when it comes to transitory, if we play the game, I’ve got the over whatever the number is. What’s your assessment? Because, again, the Fed, though, there’s a united front, they’re staying firm. They’re saying there’s no way we’re going to deviate no matter what.

SCOTT MARTIN: Yeah, I don’t know if they have a overunder yet, Charles, on that, because, as Larry pointed out, the Fed is just going to keep using that word over and over again until they’re right, because I actually agree with them. I mean, I think if the is globally re-open, as we hope they’re going to, you’re going to see that resource utilization. Easy for me to say. You’re going to see that sourcing of minerals and elements and things like that that are going into building things and making things again start to happen. Global supply chain should come back online and lessen the pressure that we’re seeing in price. So I think the one concern, though, Charles, is what the D.C. administration is doing to our good old greenback. That’s the US dollar if you’re playing at home, because this endless printing of money, the pork bills that are out there to buy votes and buy favor across America are the things that are killing the greenback, which is actually pushing up prices more than anything.

PAYNE: Yeah, DXY folks at home put that on your watch list if it goes on there. Eighty eight could be trouble for your shopping bill, although Multinational’s might like it. I want to get back to what you were saying to Larry. I understand this. And we all go shopping. We see what the prices are. But how do you explain more recently this sort of relative calm in the market? The 10 year bond yield keeps drifting. The VIX keeps going down. You know, of course, that’s the fear index. Other indicators in the market seem to have become sanguine.

GLAZER: That’s right, no, it is a really good point because we see this inflation out there, that the market isn’t sort of believing it. And it’s interesting because it would be easy for me to say to you, hey, the public isn’t buying what the Fed is selling. Actually, right now. The public is buying it. If the Fed tells them there’s no inflation, people are starting to absorb that. The market’s trying to absorb it. More importantly, China, the other big central bank, we have to keep our eyes laser focused on their jawboning, the price of commodities. They want to bring the price of commodities down for their

benefit. I still think you want to be in some of these producers of these materials, these raw materials, energy industrials, the companies that will benefit from this reopening. They’re still going to be an infrastructure plan. They’re going to benefit from that. But there’s no doubt, look, technology is getting a reprieve here because inflation fears went on hold yesterday. That’s a good thing for a lot of the really high quality tech names that we own in our portfolios. It’s good for the market as a whole. It does stabilize things. The lower VIX might be somewhat misleading. Charles, it may be sending us a false flag signal.

PAYNE: Right? I got you. Larry, it’s great seeing you, my friend. We’ll talk to you again soon, Scott. If you can stay right there because I want to bring in Bulltick Capital Markets, Kathryn Rooney Vera. And I want to switch course a little bit here. Florida Governor Ron Desantis just signed a new law imposing fines on social media companies that permanently bar political candidates. I know that’s your state, your Floridian, Kathryn, and that’s obviously these stocks. We watch a lot. Just your thoughts.

KATHRYN ROONEY VERA: Yeah, great, great thing, it’s fantastic, great state of Florida and wonderful governor, look what happened to Section 230, right? Big tech has had it both ways, have been both a publisher and a platform, a publisher. Your audience, remember, can censor butt and be sued. But a platform can’t censor but can’t be sued. And big tech has had it both ways for an inordinate amount of time. So imagine former President Trump that lives here in Florida, what his next move is going to be after this.

PAYNE: You know, I want to stay on social media and how this new woke era, coupled with really the appeasement of overseas markets and governments creating really serious turmoil. And in fact, I want to bring Scott Martin back on this. So John Cena fans are outraged. He had to he was forced to apologize in Mandarin, by the way, for calling Taiwan a country that says he is promoting the latest Fast and Furious installments. So, Scott, first, just let me get your thoughts on that. I’m a huge John Cena fan. I hated to see that.

SCOTT MARTIN: I did, too, and, you know, it’s always about intent, I think, with kind of this “WOKE” culture and some of the things that are said these days, Charles, that need to be apologized for or not. I mean, look, I don’t think

John Cena meant anything bad when he talked about Taiwan being the first country that could see Fast and Furious nine. I mean, and everybody got super upset. And then he had to apologize, like you mentioned, in Mandarin. I mean, I think with with the culture as such these days, you have to look at intent. It’s not just about what somebody says inadvertently. It’s their intent. And I don’t think John Cena meant anything bad about it. But let’s face it, let’s just say he didn’t apologize right away because he jumped on it pretty fast. Credit to him, he probably would have been cancelled. We probably had never heard from him again based on how things are going these days.

PAYNE: Well, you know, and also, let’s be honest, I mean, this is about being cancelled in China, which seems to have more sway over corporate America, woke corporate America than certainly conservatives in America. The movie did one hundred sixty million the first week and one hundred thirty five million in out of China. And also, let me add Mark Ruffalo to this. Right, because he also had to apologize. Now, this is really tough. I mean, saying Israel was committing genocide against Palestinians, Kathryn, all of this. You know, it’s clearly, you know, he was forced out the direction of Disney. They own the Avengers franchise. That’s where he’s making a lot of money. But it seems to me if you broaden this out, it’s another reason why these large corporations and their proxies, whether it’s actors or anybody else, should just simply stay out of political commentary. Your thoughts?

VERA: It’s beyond me why they think it’s to their benefit. They should stick with the bottom line rather than alienating, insulting their consumer base. Woke ideology Charles is popular with the elites, but it’s not popular with the common American. So I think that we need to look at what happened with the deplorable how that worked out for Hillary and really focus on the bottom line here, guys.

PAYNE: Well, you always focus on the bottom line, so let’s shift gears for a moment. I want your thoughts on this market. Its meandering, but I’m thinking and I’m you know, it’s going to take some time to know that we might have had an inflection point last week. I feel like the bias is kind of shifted back to the upside. And I think maybe for now the worst could be over. I know you’re not convinced. Where do you see this market?

VERA: Well, we have an inflation that’s both transitory and structural. Your previous guest, we’re talking about the transitory nature of it. It is, in fact. And by July, the base effects from last year’s horrific year is going to roll off. So that’s going to favor tech in the very near term. In twenty twenty two, though, Charles, I’m far more cautious. I think the combination of a doubling of the of long term capital gains, higher corporate taxes, higher marginal income taxes on on the rich are going to really favor and I think that combined with more structural inflation, are going to favor the less sexy sectors such as utilities, such as energy, such as telecom, high dividend names that I think these tax increases, especially on long term capital gains, Charles are going to be the great equalizer between what has historically been beneficial for tech, low capital gains tax brackets and and higher dividend sectors such as utilities and telecom and energy, which I think are going to be more defensive positions for going into twenty, twenty two.

PAYNE: All right, so folks, enjoy the run this year while you can, because if utilities are the number one sector, maybe the rest of your portfolio ain’t looking so good. Kathryn, Scott, always appreciate it. Thank you both very much.

9:10

CIO Scott Martin Interviewed on Fox Business News 5.7.21

Program: Making Money with Charles Payne

Date: 5/7/2021
Station: Fox Business News
Time: 2:00PM

CHARLES PAYNE: Want to bring in Kingsview Wealth Management, CIO Scott Martin, along with the managing partner of Veritas Financial, Greg Branch. Scott, you know, how has today’s big miss with this jobs market report, how has it changed the way you looked at the market? Because I think everyone model for a number of months higher than this. So what adjustments are you making?

SCOTT MARTIN: Yeah, I mean, Charles, I like the narrative and the imagery, even talking about baseball-related. I mean, we haven’t seen a swing and a miss like this and say, Rob Dear, one of my favorite baseball players of the 80s was playing for the Detroit Tigers. And so if that doesn’t explain how big of a of a swing and a miss this was today, it does, though, show you that, look, we’re in a volatile environment for data. I mean, Charles, if you look at personal income data, you even look at some of the inflation data, look at the personal savings data. A lot of this data is volatile right now because we’re doing this struggle, this push and pull, as you and Brian talked about, with the government opening the economy or the government seeing helping the economy, if you will, by providing stimulus or actually the economy naturally opening and operating on its own. So the data is going to be in this push and pull environment for me. I think you’ve got it taken for our money. It keeps you in the portfolio we’re managing. You have to take days like the last couple of days leading to this jobs number. You have to take days like we’re going to get in the next couple weeks as we go through the rest of earnings season to buy companies that are down, you know, by on volatility, try to find these companies and get the shopping lists out. And together they’re are going to give you opportunities when things just fall too much. And then that’s when you’ve got to solidify and fortify your portfolios.

PAYNE: Greg, have you made any changes to just your overall thinking since this morning and these numbers,

GREG BRANCH: Counterintuitive as it may seem Charles, this was actually reinforcing for my outlook and actually gave me reassurance. Look, we always knew that there would be a very strong back half story that estimates are too low. And we’re moving up the vaccination curve quick, more quickly than we thought. That’s great for the company earnings. That means that we can have performance without multiple expansion from here as the earnings go up. And so, you know, we had a massive 500000 jobs last report. It was just the other way. And so what this underscores is that these things aren’t linear. They’re episodic. There will be push and pull. But the market is taking a breather, as you saw in the yield on the 10 year, that inflation is going to be less of a challenge than we originally thought a week ago or three days ago when Secretary Yellen was advising of a change.

PAYNE: Well, speaking of Push-Pull, right now, Fidelity has two charts on the last day or so, and I think they’re very intriguing. One overlays the stock market now against that period going into the Great Recession, suggesting that we’re on the cusp of a crash. The other one shows a correlation between the stock market and bonds in the 1960s. This one suggests that we’ve got at least five years left on the rally. So, Scott, which one are you leaning toward the most?

MARTIN: Well, the answer’s somewhere probably in between now. I love these numbers and data that come out and tell you the crash is going to happen Monday or next Friday or June twenty-eighth my birthday. Now, that’s and you can send gifts any time you want. But the reality is this, Charles, we’re going to have these phases. I mean, we’ve had him already this year. We had him a little bit even towards the fourth quarter of last year, where it’s going to feel like this is the big tipping point. This is the tip over. But I believe that we’re in a position where we do have lower interest rates still. Yes, they’ve gone up. Earnings are absolutely awesome. So if we do to the point that was just made, if we do get oh my gosh, some multiple expansion, I’ve told you, Charles, our target could be S&P. Five thousand, believe it or not, because we’re going to get some of the multiple times on that that we need to get there to that level. And I believe also to the fact that the government hopefully will let the economy take over for this thing versus take all the control that they’ve had for the last year.

PAYNE: Greg, I would have posed the same thing to you, but also you mentioned earnings, in fact, the earnings, multiple earnings growing into these

multiples. We’ve got four hundred nineteen S&P companies that reported coming into today. This has been an astonishing earnings season. Eighty-seven percent beat earnings, a 50 percent climb on average. Seventy-seven percent beat on revenue. It’s just absolutely phenomenal. And consequently, the subsequent quarters, the estimates are going through the roof, but it hasn’t been reflected necessarily in the market. Are you seeing, Greg, that maybe this will start to be reflected like, you know, these stocks that didn’t necessarily go up, even with some that went down may turn around and work the way higher because of earnings?

BRANCH: I think we’ll know better in another month or so. Charles, there are two things we need to look out for. One, we do need to see where the inflation is coming out, because if it is a lot more acute than the Fed is expecting, despite the relief we got today, they will have to change their posture on rates, two. We are just coming up on some of those really difficult compares. And I think that investors will wait to see if there still remains a real tailwind, even as people are back to work and back out outside their homes. And so I think the market will need to see that to have confidence that there are some significant tailwinds outside of covid for that to happen.

PAYNE: All right. I’m going to ask you then, a month from now, the same question, but right now we’ve got to leave it there. Scott. Greg, by the way, Scott, give me a give you a shout out in gold, one of the top-performing ETFs this week, one point six billion dollars went into it. You talked about staying the course. It broke through eighteen hundred. Congratulations, both guys. Have a great weekend.

6:54