Kingsview CIO Scott Martin discusses market expectations and the response to recent tech earnings reports.
Program: Cavuto Coast to Coast
Station: Fox Business News
NEIL CAVUTO: Meanwhile, do want to draw your attention. We are showing the Nasdaq for a reason, down three hundred forty-five points right now, led by big declines in the likes of Amazon and Microsoft and Alphabet and a host of others. The heavyweights that were leading the parade are now leading the exit from the parade for now. Scott Martin, Kingsview Asset Management. We’ve got Jack Macintyre, Brandywine Global Portfolio Manager. Scott, to you first off, If I had a dime for every time I’ve seen the Great Correction and ensue technology stocks and titans. I’d have a lot of dimes right there. So the latest argument is they’re coming back to Earth because interest rates are rising. Capital gains taxes could be rising. A good excuse to sell these high flyers while you still can make some money. So is this time any different from some of the prior.
SCOTT MARTIN: Yeah, and you could have made a few dimes plus, Neil, if you actually bought into those corrections and actually tried to avoid the fear trade that was out there in the selling and actually take advantage of lower prices. Look, these tech stocks, these high flyers, these momentum plays don’t like the notion of higher interest rates. We’ve learned that a lot this year. Here’s the one discouraging thing, though, Neil. The companies you mentioned earlier on, the Apples, the Googles, the Microsoft, the Amazons, all had blowout earnings of recent notes the last couple of weeks or so. Some of the earnings reports that these companies had were amazing. And the company stocks have not gone up since they went up for like a day after and then pulled back considerably in some cases sense that’s a little discouraging from the standpoint of what the market was expecting, what the market got and what we’re seeing from the stock prices themselves.
CAVUTO: You know, maybe adding some soul to the selling wound today, Jack, was this news out of Janet Yellen at this Atlantic conference in which she said that rates would have to raise somewhat to keep the economy from overheating? I don’t think she said anything that the average market watchers would be stunned by, but maybe coming as it does a week after we heard from the Fed chairman, the president, Fed Chairman Jerome Powell, say that that was unlikely. I’m wondering what’s going on here. What do you think?
JACK MCINTYRE: So, you know, we’ve had rates move up pretty significantly since August of last year than in February and March, the long rates really started accelerate. So, you know that I think that’s sort of reflective. Neil, one of the things I think might be going on as we get into twenty twenty one, you know, markets are forward looking. They’re going to start looking at twenty twenty two. Hey, we’re we’re probably at peak economic growth, peak earnings growth, you know, and certainly a peak fiscal stimulus. So I don’t know. And I’m again, I’m not trying to pick a top in the market, but I just to me, it kind of makes sense that we start to see maybe a little bit more two way flows in certain sectors. And tech is certainly one of those.
CAVUTO: Yeah, you know, it’s hard to glean trends in a market like this, but it’s one that bears watching and we’ll keep watching it Scott and Jack, thank you both very, very much.
Kingsview CIO Scott Martin discusses inflationary concerns and the normalization of inflation rates.
Program: Your World with Cavuto
Station: Fox News Channel
NEIL CAVUTO: Now, I know a lot of you are looking at this. Oh, my gosh, you’re losing your head. How bad does this all get? I have to remind you, this is still relatively contained. And for those of you who are getting a little nervous about a three percent something mortgage, did I ever tell you the time my wife and I got our first mortgage and it was over 13 percent? My point is my point is that it has been a lot higher and a lot worse. But again, it’s the trend that has some folks worried on Wall Street and that could eat into earnings and real gains that we’ve been seeing and the competition for stocks as well. After all, if you can buy a Treasury Bond or note from Uncle Sam, fully guaranteed, why would you risk it in the market? That’s again, one of the fears, even though those rates are still very, very low. Let’s get the read from Danielle DiMartino Booth a former Dallas Fed advisor. I might point out on our own, Scott Martin wasn’t even alive when we had the last inflation spiral. So, Scott, that makes you a perfect guy to talk about what’s happening right now. I think there’s a generation of people who don’t remember this but are freaking out about it because they’ve heard people talk about when it was much higher. They just know that it’s higher than what they’re used to. What do you tell them?
SCOTT MARTIN: I agree, and I think the pace of the higherness is, let’s say Neil, is really what’s scaring folks, because you’re right, we’ve been facing this inflation bugaboo now for, say, three decades, since the 70s at least. And so if you look at the pace at which though inflation is starting to increase and now we’re getting that pickup in economic growth, obviously we have a lot of government spending behind that as well. You’re starting to see some of the inflation numbers catch up and you make a good point, even though inflation may double from here, let’s say, and get up and say, oh, my gosh, close to four percent. That’s nothing like we’ve seen in past decades. But it still is going to feel like a lot different of an environment than we’ve had in the last several years, where basically we were growing for free without inflation and without much wage growth either.
NEIL CAVUTO: And we’re spending like crazy, Danielle you know, you know these figures far better than I, but I was reading that for the next couple of quarters, it looks like we’re going to be borrowing upwards of at least one and a quarter trillion dollars to support the spending already committed. Forget about the trillions more the president is planning on. So that generally means still higher rates. What do you think?
DANIELLE DIMARTINO BOOTH: Neil, if you’re asking me sorry, I thought I thought you were addressing Edward, if you’re asking me, I think that that’s one of the reasons that Janet Yellen stepped into her old self as former head of the Federal Reserve today and mentioned the specter of rising interest rates, which is, by the way, not under her purview. That is strictly Jay Powell’s world. But she
CAVUTO: Why did she do that? Now she’s a former Federal Reserve chairman. I get that. But she was stomping on someone else’s turf. And I wonder if that was by design or what did you read into that?
BOOTH: There is look, there is no way in the world that she did not understand the weight and the magnitude of what she was saying. In theory, the Federal Reserve official leaders should not talk about the US dollar. That is the place at the US Treasury secretary, vice versa. The US Treasury secretary is not supposed to be talking about interest rate policy, which is supposed to be set by an independent, apolitical, unelected group of individuals. Jay Powell has spent the last part, the better part of the last week, insisting that they’re not even thinking about thinking about slowing the growth of the Federal Reserve’s balance sheet, which, by the way, is step one before they could even contemplate raising interest rates. And she just beat him well over the finish line and slaughtered all of the messaging that he has carefully crafted for the past weeks and months. So this was very unusual and I would add highly inappropriate.
CAVUTO: You know, Scott, if you think about it, the backdrop for this is all good news companies earning money hand over fist, they’re doing much better than thought. The technology companies, the very ones getting beaten down yesterday and today are the ones that are reporting these off-the-chart numbers, retail sales, soaring, car sales doing very, very well. Consumer confidence, the highest in years. So that’s the backdrop. I guess the balance to that backdrop is people fear rates go still higher and it could be a short-lived good market environment. What do you think?
MARTIN: Well, and rates are going to go higher, and I think at some point we want to see that interest rate curve normalize. And too, Neil, inflation isn’t a bad thing as long as it’s not out of control. And we’ll actually see that show up in stock prices if these companies have pricing power, which they’re starting to get. So as long as this pace doesn’t go out of control, some normalization of the interest rate curve, some normalization of interest or inflation rates, rather, should be good for this market and it should be able to tolerate it.
CAVUTO: All right, final word on that. I wish I could have more time with you guys to regale you on when my wife and I got our first mortgage in the 80s and oh, you’ve heard that a hundred to two hundred times.
BOOTH: You’ve never seen before, Neil.
CAVUTO: Yeah, right. Right, right. All right. Thank you guys very, very much
Kingsview CIO Scott Martin discusses how the stimulus has affected consumer demand in technology. He also addresses capital gains tax rates, income tax rates, and market volatility.
Program: Your World with Neil Cavuto
Station: Fox News Channel
NEIL CAVUTO: It is probably that more closely watched of earnings in general. Forget about this technology, because Apple has become a key economic barometer pretty much for the country and maybe the markets as a whole. Its sales and earnings sizzling in the latest quarter usually consider a slower quarter after the busy fourth quarter Christmas shopping season. But this one was just nothing less than a blowout. Overall sales at the fifty four percent higher than the year ago period, much stronger than they thought. Just to put it in some context, right now, the number of iPhones it sold sixty five percent more than last year, the number of iPads, about 70 percent more personal computers around seventy eight percent more after hours trading. The stock is jumping continue. A trend we’ve seen with the likes of Facebook and Alphabet, to a lesser extent with Microsoft to Art Hogan, National Securities Corporation, Scott Martin Kingsview Asset Management, Art to you first. What do you make of what’s happening with Apple? And more to the point, technology in general?
ART HOGAN: Right. You know Neil, one of the things we think about a lot as we sort of normalize the economy is how many of these companies really pulled forward a lot of demand because of the pandemic. We’re all working at home. We knew we need new laptops and iPads and phones, et cetera. And clearly this quarter shows that that’s not the case for Apple right now. They continue to create demand for their new products. And clearly, we’re just at the tip of the iceberg for the 5G rollout. What’s more interesting to me is that they just added 90 billion dollars to their current buyback program and that still has 30 billion left on it. So it’s a very shareholder friendly report right here. And the numbers just blew everybody away.
CAVUTO: Yeah, it’s increasing its dividend for a lot of our viewers who sort of get caught in this and want to know what does that mean? Obviously, when a company expresses enough confidence to buy its stock, that limits the available stock, lets the market go higher and all of that. But having said all of
that, Scott Martin, it is a good reflection on the American consumer, in this case, the global consumer as well, coming out of this pandemic. Not that they were hurting during it, but what do you make of that consumer’s appetite to buy, you know, items that aren’t necessarily cheap?
SCOTT MARTIN: It’s a great tailwind and some of that money, Neil, is coming for free in the mail or coming via direct deposit from your friends in Washington, D.C., makes those purchases probably a little easier now. Art made the point. And you did as well. I mean, we’re in the midst of the early innings, really, of a five G iPhone upgrade cycle. So that’s really, I think, what it’s showing up in this quarterly report. You know what else is interesting, though? That could be just pursuant to maybe more of that consumer demand that’s out there, Neal, is the services part of Apple, which really I mean, gosh, guys in the last few years has really taken on a life of its own. I mean, you’re talking about Apple, iCloud. You’re talking about the App Store. You’re talking about Apple Music and Apple Arcade, which, yes, I play at home with my kids. Those things are the high margin services products that the company has, Neil, and those are firing on all cylinders to. So this company, Soup to Nuts, is really taking care of business here and the stock price is reflecting it.
CAVUTO: You know, if I could just step back from this technology, the markets in general, are you bullish with all this because the markets, which are on a tear under Donald Trump, continue to build on that under Joe Biden. And I’m just wondering how long this goes on. Are there enough doubters out there, enough issues or worries to justify it? Usually when everyone capitulates and say, oh, the hell with it, I’m just writing this bull as long as he can go. What what do you tell people?
HOGAN: Well, I’ll tell you this, I think that interestingly, this has been one of those years where earnings estimates have gone higher during the quarter. That’s only happened twice in the last 10 years. So, you know, we’re clearly seeing the beginning of what’s going to be some pretty parabolic earnings growth and obviously GDP growth as the economy normalizes. So I don’t think we’ve been able to correctly factor in what the S&P 500 can earn next year. In the middle of last summer, we thought that was going to be about one hundred seventy two dollars. Coming into this morning, it looks like one hundred eighty six. And I bet you anything it’s going to be north of one hundred and ninety dollars for the S&P 500 earnings for twenty twenty one by
the end of this reporting season. And that means if you don’t even change the multiple, you get the forty three hundred in the S&P 500. So yeah, I think there’s there’s more tailwinds and headwinds right now. Now the stocks need to take a pause at some juncture. And I think we’ve had some rotational corrections technology sold off a month ago. It’s back in favor now. Cyclicals are selling off right now. They were very much in favor for the entirety of the first quarter. The Russell 2000 had an eight percent draw down its back in favor again. So I think what we’re seeing is rotational corrections, which makes it a very healthy market.
CAVUTO: You know, Scott, if I could throw out a very unhealthy development in Washington, maybe healthy as a market, see a stimulus, a stimulus, right. But trillions of dollars in spending, I notice Wall Street doesn’t have any discretion as to whether it’s coming through more spending or tax cuts, but they seem to like it just fine. If they’re worried about it, they have a funny way of showing it. What do you think?
MARTIN: Yeah, wild parties are fun until your parents come home. I think I know that from experience, maybe have a flashback or two, but that is a reality.
CAVUTO: I never went to parties I was very busy at home studying and as was Art. So we cannot relate to that.
MARTIN: I was the one who had the parties that nobody would come over to Neil. Yeah. So maybe we are in that same camp. But the reality is, Neil, DC, though, is addicted to this, just like students are departing in the sense of like they keep spending, they keep putting out these numbers, they keep keeping the consumer on the government dole until they can’t stop anymore. And so at some point, this does have to be paid for. I think we’re starting to see indications of that. Capital gains taxes, corporate tax rate hikes, income tax rate hikes, that stuff will definitely show up sooner than later. And that’s when I think we start to have some market volatility here.
CAVUTO: Art, a new investor, comes to you today and says, Art, I want it on this market, I’ve never been in on it, but I hear all these good things. I caught you and Scott last night and I want to I want in. What do you tell them?
HOGAN: You tell a new investor that you want to have a barbell approach in twenty twenty one, where on one end of that barbell you’re going to have thematic fast growth companies. 5G is one of those themes. Cloud computing and cloud security are two of those other themes. Apple falls into that category of 5G on the other end of that barbell. I want you to have exposure to economically sensitive cyclicals and we’re going to look at your portfolio and keep that barbell level every two months so that if technology is running ahead, we’re going to take profits and put it in the cyclicals. If you did that in 2020, you outperformed the S&P 500 by four hundred and seventy five basis points. And the same thing is holding true through the first quarter of this year. So I think that’s a new investor has to look at this as balanced and diversified.
CAVUTO: Yeah, it’s your perspective for me, I know for young people, it’s it’s longer term can be a ways know people like Scott, but for me, long term is lunch tomorrow. So we’ll have to sort that out. But, Art Scott, thank you both very, very much.
Kingsview CIO Scott Martin talks about bullishness sentiment, historical corrections in the market, and what factor might mitigate pullbacks.
Program: Making Money with Charles Payne
Station: Fox Business News
CHARLES PAYNE: Meanwhile, there is other stuff happening, tangible stuff, in fact, that should inform and really, really help investors and I think encourage investors. Joining me now to discuss all of these things Kingsview Wealth Management CIO Scott Martin. TJM Institutional Service Director Jim Iuirio, and Advisors Capital Managing partner Joanne Feeney. Jim, let me start with you. If the administration was looking to see how Wall Street would handle the world’s highest capital gains tax. I think they got their answer. You think they’ll listen?
JIM IUIRIO: Well, first of all, they could have just asked us ahead of time what we are going to think about a forty-three percent cap on the gains. They didn’t have to actually plug that out. Remember, they are politicians. So if there were not a forty three percent capital gains rate, they know that’s absurd. They probably have in their sights realistically at 30 percent. And then they want to make us think that we negotiated back. So we feel like we got some sort of deal. But let’s keep it in perspective. 30 percent is awful. It’s toxic and destructive policy, and it’s destructive for the middle class. Those people make over a million dollars that they’re trying to target. Those are the people that employed the middle class. So the question becomes, are they willing to signal that they’re anti wealth or against the wealthy at the risk of damaging the middle class and damaging the economy? And I think the answer to that is yes, I think they are willing to do that. I think it’s terrible policy. And I think that if they really get far in pushing it, that Wall Street will have a bit of a tantrum. But in the end, I think it’ll be OK for stocks.
CHARLES PAYNE: Yeah, you know, to that point, it feels like this administration is really worried about their strategy is to win the polls and message things and public relations things and get the media to win the polls and then try to force the action. You know, Joanne, of course, there was also even coming into yesterday, it felt like different things bother in this market. I mean, I’m looking at the internals every day at the close. They’ve been unimpressive, even on Update’s volume drying up. Even today, we’re having a really strong day, you know, with respect to the bounce back economic data. And yet volume is extremely low again. Where is this trepidation coming from?
JOANNE FEENEY: Well, you know, Charles, I think a lot of folks are a little bit fearful, valuations in many stocks are quite high and a lot of investors have pretty concentrated portfolios and they’re trying to figure out what to do potentially with rising rates on the horizon and maybe that capital gains tax. That’s why we think right now index investing can be particularly fraught. You know we invest in individual stocks for our clients, either for appreciation or looking for income. And we still think you can find good values here, but you just have to be a lot more selective because of those real significant concerns over some of the headwinds that will come into play once we get through this Goldilocks period of fast growth, lots of fiscal spending.
CHARLES PAYNE: I’m going to come back to you about those individual ideas, because I’m all about individual ideas to, you know, Scott now, despite all of this angst, right, there are two things that have remained constant. The market is higher. It’s, in fact, having a pretty good year So far. Individual investors remain very bullish that AAAI number is a monster. It won’t go down. But I thought that that was supposed to be negative for the markets. What’s going on here?
SCOTT MARTIN: Well, it could eventually be negative, Charles. I mean, yes, you’re right. The bullish bullishness sentiment, easy for me to say is, you know, that’s that’s a concern. And I think the funny part, as you mentioned, just with behavioral finance, I mean, you look back to some of these big corrections, whether it was, you know, last March, the two thousand fourteen, fifteen sixteen area, the crash of 08, of course, and then other ones, when the sentiment gets really low is actually the time you want to buy, when things get bullishness at these heights, when it gets really sanguine. Those are the times you should actually be somewhat careful. So I agree with you. I think that will eventually happen again because it has proved itself out over history. But it can the market can stay bullish and the market can keep going up until that last investor is in. That’s when things will turn over.
PAYNE: You know, Joanne, I want to come back to you because I’m thinking about this individual stock thing and earnings season, we’re two weeks and really the only word I can use is amazing revenues, earnings, crushing it much better than than we thought they would be on January 1st and April 1st. But for the most part, a lot of these stocks are popping in the aftermarket, then selling off. So how do you find I mean, someone who zeroes in on this, it certainly must inform you, particularly the ones with these amazing numbers and for whatever reason, they’re selling off how should our viewers deal with that.
FEENEY: Yeah, you know, it should be expected to some extent, expectations were really high coming into this earning season, right? We knew these companies were getting back to where profits were rising. So in some sense, expectations were above the official numbers….
PAYNE: So let me jump in – let me jump in. Would you would you sell then, like a Whirlpool? Two days ago after the closed Whirlpool go straight up yesterday, it got hammered. I didn’t see it today. But if I’m holding Whirlpool, what message do I take the earnings in the initial pop or do I sell with the crowd?
FEENEY: Now, you look at the fundamentals, Whirlpool is a stock we’ve owned for a long time, we really like it here. The temporary sell off is some folks may be taking some profits, but you got to look at the fundamentals. And the outlook for Whirlpool is really strong because look at the housing market, right? Housing market is on fire. People are going to be buying new appliances. And that’s not the only place one can look for these good opportunities. You know, auto is doing very well. Even with the slowdown in production company like Texas Instruments or NXPI, really gives investors opportunities, even if there’s a sell off at earnings.
PAYNE: Jim, your thoughts on the earning season so far? What have you learned? What do you like or dislike?
IUIRIO: The one thing and Joanne mentioned that you mentioned it too the one thing that makes me a little bit more cautious is the fact that some acceptable earnings have been met with some selling. But realistically, for me, nothing matters as much as big tech earnings season, which is next week. So to me, I’m going to be looking at that. This was three weeks ago and I think the market was anticipating that interest rates were going to go much higher. I think that we’re going to scrutinize those tech earnings more based on those discounted cash flow models that tech stocks, you know, we presuppose such high earnings in the future now that we think that rates are going to be stable. And thank you for bad policy for stabling at stabilizing rates yesterday. Now, I think some of those tech earnings will be more accepted. So I’m actually looking and I think the Nasdaq is going to break through fourteen thousand in the next couple of days, particularly after those earnings. And I’m looking to get long some of the longer some of those names afterwards. But to me, earnings season is tech, earnings is 60 percent, bank earnings is 20 percent. And the rest of it is just bits and pieces.
PAYNE: I got you. Hey, let’s talk about some other catalysts for a potential rally, Scott buybacks, corporations came in sitting a record amount of money. A lot of them are telling us they’re going to put it to work, buy back their own stock. What does it mean for the market? And are there any names that may have swayed you because of this?
MARTIN: Well, I think Jim talked about some of the financials, we’ve seen it in some other areas where you’ve had a lot of cash, like you mentioned, Charles, on the balance sheets. I mean, don’t forget too – it could be buybacks, maybe some dividend increases. I mean, you’re right. Cash was not only king, but cash was also all the gestures and all the servants and everything in cash was everywhere for a while. And it’s still kind of is. I mean, so we have like this ability for these companies now to utilize that cash to issue debt at low interest rates to do so. And I think that’s going to be the continuing driver that will mitigate some of the pullbacks that we’ve talked about in the segment so far when those buybacks kick in, when maybe dividend increases come down the line. Because don’t forget, guys, as companies are out there and having, you know, let’s say back in the day, favorable dividend rates maybe at two percent. But is that tenure creeps up closer to two percent. Maybe companies start raising their dividends in anticipation of something better down the line for their own future. So therefore, health care companies and things like that might actually start raising dividends.
PAYNE: All right, and Joanne, let me ask you real quick about the reopening trade, is it back on and what do you like?
FEENEY: Yeah, I think we’re going to continue to see that play out over the year, the reopening trade is good for energy stocks. We like a couple of banks, you know, to the point of seeing increased buybacks and increased dividends. You know, we think Citigroup is in that position. MetLife is in that position. JP Morgan, these are stocks we’ve held for clients for a long time. And we think there’s definitely more room to run there. But you’ve also got like a TJ Max, for example, that really has underperformed, but really is going to benefit from the reopening as folks go back into the brick and mortar shops, Constellation brands, Casey General Stores, people getting back out on the road, back out to bars. So a lot of opportunity out there to play this rotation.
PAYNE: Yeah, well, we already saw it in that last retail sales report, which probably was just the tip of the iceberg. They call it revenge buying. We’ll see. Scott, Jim. Joanne, thank you all very much. Have a great weekend. Fantastic stuff.
Kingsview CIO Scott Martin discusses alternative energy, how the free market has advanced technology, and the growth of economic demands coming out of the pandemic.
Program: Cavuto Coast to Coast
Station: Fox Business News
NEIL CAVUTO: If you could stay there, my friend, I want to get your fine brain in the mix of this, we’ve got Courtney Dominguez here of Payne Capital, Senior Wealth Adviser, and Scott Martin Kingsview Asset Management CIO, Fox News Contributor. Courtney, what do you think of what Phil was nicely outlining here? It’s a move away from traditional gas powered vehicles that’s been pushed even by the automakers themselves, many of whom hope to have all electric line ups in the next few years. But it’s quite another issue for governors to sort of push the administration into mandating that. Where do you think this is going?
COURTNEY DOMINGUEZ: Yeah, I think you have mentioned this earlier, NeIl, which I do agree with, we’re going to have to see where the demand goes. And I do think especially for younger generations, really are pushing more toward clean energy sources. So I think long term, I don’t think that’s a trend that’s going to go away by any means. Short term, the infrastructure is just not there yet. We we really just don’t have the means to completely rely on clean energy. So when you’re looking at investments in markets, I don’t think you’re more traditional energy sources are going away here anytime soon. But long term down the line, I do think it’s a trend that we want to continue and maybe start to get a piece of. What’s kind of interesting, actually, is a lot of your biggest a lot of your biggest investors in some of those clean energy are your more traditional energy sources, because they do know that that’s the way the future. So it’s definitely something to be watching. But I agree it’s probably a longer term trend here.
CAVUTO: You know, without playing the politics, it’s so easy to dip into on this, Scott, I’m fair and balanced on energy. I’m all in on everything and wind, solar, you name it. If that is the future, don’t favor one over the other or isolate one. Just as we’ve gotten our energy independence. Now, there are a lot of other factors at play. I grant you, the appeal of electric is obviously there. If
the major auto companies are making this switch from Volvo to Ford, GM, Audi and Mercedes and on and on, and they’re improving their mileage dramatically, I believe a Mercedes offering now gets over five hundred miles on a single charge. So it’s changed the math and the dynamics. I get it, but I don’t get it at the expense of traditional energy in the time being. Let the markets decide that. That’s all I’m saying. What do you think?
SCOTT MARTIN: And. Well, Neil. And they are. And that’s why I don’t understand the government’s move to hasten this approach, to force everybody to do this. I mean, this just goes down many lines of the government taking away civil liberties and telling us what we can do and when and how. And as Phil said, and as Courtney said, the markets will take care of this and it already is, whether that’s a younger generation thing or not. And frankly, too, I mean, even to date, I mean, if you read back some of the old periodicals or some of the old scares that we had out there and say, the 80s and 90s, yes, I was actually alive then. And reading them, believe it or not, read at a young age, granted. But like we were supposed to run out of oil by now. We were going to run out of water. And technology has advanced and such in those areas where even the the dirty old, dirtier fossil fuel that is out there are better burned these days, better utilize these days because of technology, because the free market took care of that, not the government.
CAVUTO: Well said, but I’m a little older than you, maybe two or three years Scott, I can’t remember when we were transitioning from horses and I thought, no way that would that would go well and fool me twice. So Phil let me come back to you on where this goes. If if you’re Vladimir Putin and you’re the premier member of this OPEC plus club and you’re trying to push gas prices up, push oil prices up, and this has got to be a welcome development, right. Because it would potentially cut down the supply and drive up the demand. So how do you think he feels about all this?
PHIL FLYNN: Yeah, I think he’s secretly smiling, you know, because every time the government in the United States, you know, makes a move like this, it makes us more dependent on Russia, you know, and foreign oil. And if you look at, you know, what we have seen under the last couple of years since we’re rebounding back on the demand from the covid crisis, the thing that we’re finding is that we’re becoming more and more dependent on foreign
oil. And listen, you know, I understand these aspirational goals that everybody drive an electric car, you know, but you have to take it to the next level of how that’s going to impact. You know, have any thought about what what impact the environment’s going to feel from building millions and millions and millions of these batteries. And we even thought about, you know, the strip mining it’s going to take have we thought about how we’re going to dispose of these things when they’re no good? You know, so, you know, the market is moving in the right direction, you know, by the government trying to, I think, grandstand. What’s happening is could actually do more damage than good. So Vladimir smiling today, you know, and the U.S. automakers are scratching their heads to, you know, we’re moving in this direction. You know, why make it more difficult to make this transition happen?
CAVUTO: All right, we’ll see the backdrop for all of this, guys, as you know, far better than I is the improving economy. Some, you know, stunning economic news, the latest of which is what certainly, you know, has been happening on the housing front. Weekly mortgage demand jumping more than eight percent, obviously respond to a slight dip in interest rates after a steady climb. I’m looking at all of that, Courteney, and saying that that’s the backdrop for, know, oil prices that have been today, notwithstanding, you know, moving up through this and a whole host of other developments on the commodity front that has the likes of Procter Gamble, Kimberly-Clark talking about raising everyday items by at least June and in the case of Procter and Gamble, by at least September. So that is the backdrop for a lot of this. What do you think?
DOMINGUEZ: Yeah, really, everything you’re mentioning is all things that are going to potentially be increasing with inflation, which I definitely think is a trend that we’re likely going to see continue through this year. And really, you’re seeing kind of two camps right now where there’s a lot of people who are under the assumption that inflation is kind of a temporary event. That’s going to happen just as the economy continues to reopen. But there is another camp, and I do think it’s….
CAVUTO: You’re not worried about a real type of 70s type experience that was way before you were born. And I was old back then. So you’re not you’re not looking for that. What are you looking for?
DOMINGUEZ: I do think it would be more of a short term. That being said, I don’t think either the camp thing is just temporary and inflation’s not kicking in. But you’re right. I mean, it’s been a very long time since inflation kicked in. I think a lot of people are becoming complacent there. So I don’t I’m not really expecting something that dramatic like we necessarily saw in the 70s. But you definitely want to make sure you have inflation hedges in there and you’re seeing that in things like mortgage rates are going up, even though rates have eventually ticked up there, still really low for historical standards. You’re seeing people taking advantage of that because people are kind of assuming if rates go up, we may as well take advantage of the mortgage rates that are there right now.
CAVUTO: Good point. You know, it cuts both ways as we slowly come out of this pandemic. Obviously, economic demands grow and economy – That’s great. I get that Scott, but for a company like Netflix, it could be problematic, right? I mean, the number of streamers they’re having, I mean, you know, it was considered weak or weaker than expected at four million in this quarter. New subscribers expected to go down to one million in the next quarter. Is this going to play out with a lot of classic pandemic plays?
MARTIN: Some places, you know, the Netflix one is frankly a head scratcher, Neal. In fact, full disclosure, we bought some this morning just because those numbers were absolutely terrible, frankly, and I mean, I don’t know where some of the subs win. I mean, I know a handful of people that added Netflix subscriptions ahead of that crackdown, by the way, that they’re doing, where the sharing of passwords is going on, by the way, which I don’t participate in or condone. However, I’ve heard people do that stuff. So anyway, the reality is they sandbagged the numbers. I mean, to talk about a million subs added in the upcoming quarter or two, like that’s just a really sandbag number and a reason to probably get into the stock here because that bad news is already in the market and reflected in today’s stock price fall.
CAVUTO: All right, guys, it is where we’ll follow it all very, very closely. I want to thank you. In the meantime…
Kingsview CIO Scott Marting discusses immigration policy and the role of the U.S. in “fixing” foreign economies.
Program: Cavuto Coast to Coast
Station: Fox Business News
NEIL CAVUTO: Want to go to Phil Flynn and Scott Martin back with us to look at the impact of this on the economy. You know, if you think about it, Phil, much of this is borne of the fact that things are so bad south of the border in Mexico and points way further south and Central and South America that this is what happens. One idea that has come up is to help finance and provide money, support for those who are making the journey. What do you think of that?
PHIL FLYNN: I think it would be a good idea, but the United States can’t do it alone. I mean, the leadership in these of their own countries really have to take steps forward you know, for years the U.S. has been trying to support Mexico in some of other South American countries without a lot of success. You know, a lot of it has been poor leadership. You know, I think it’s really sad, though. I think what we’re seeing on the border isn’t just about the economy. I also think it’s because we’ve used, you know, the immigration issue, you know, and now these people have become like political pawns that are caught up in this, you know, this debate about immigration here in the United States. And it really saddens me to see what’s going on there, because I think in some cases, these people are being exploited for political purposes. And so I think we have a lot of responsibility to see what we can do to fix these other countries economically.
CAVUTO: You know, the president is being pushed, Scott Martin, to provide more funds and open up the refugees that we take into this country now capped at around, you know, sixty thousand or so, sixty five thousand and dramatically increase that. The argument is that this economy can easily absorb these numbers. And the higher they go, do you think it can do you think we can absorb a lot more people than we’re taking in right now?
SCOTT MARTIN: Well, I don’t believe so, and I think that’s where the numbers are getting scary, as you mentioned. I mean, it’s sixty thousand today or whatever number that and what is it, one hundred and a couple of months. I mean, this will keep growing. I think the problem is, though, Neil, you can’t fix these countries economically to some degree, maybe Mexico. Yes. But some of the other countries in Central and South America, much tougher endeavor. So when you think about the money that’s going to be given the fact that some of these folks still come over illegally and start working working illegally. So they’re not paying taxes, they’re taking American jobs. They’re putting pressure on some of those cities on the border anyway. So in it, in an economy that’s already struggling to recover, because all the shutdowns I mean, you’re talking about a confluence of events. It’s really not great economically. So with respect to trying to fix all these problems at once or fix it with money by throwing money at the problem, I don’t think that’s exactly the necessary or capable solution here.
CAVUTO: Guys I want to thank you both.
Kingsview CIO Scott Martin discusses the value of gold in a portfolio and names in the alternative energy space.
Program: Making Money with Charles Payne
Station: Fox Business News
CHARLES PAYNE: All right, so it’s been a monster week right here, earnings, economic data, of-course Coinbase went public. Now, amid all of these hot topics, something else was happening. And I’m asking, is it time to reconsider Gold? Well, my next guest says he’s not reconsidering it because he never left. Here with us now, Kingsview, Wealth Management CIO, Fox Business Contributor Scott Martin. Scott, you know, Gold making that little stealth rally. I looked at the chart. Look, the global double bottom breaking through some old resistance numbers. Is it finally maybe escaping the shadow of Bitcoin?
SCOTT MARTIN: I believe so, Charles, and kind of always considering gold, I am I mean, people were calling me Gold Member for years, and while that was a great compliment, it still is true, though, in the sense of I guess I could still be Gold Member to some sense, Charles, because of the value that Gold brings to your portfolio, other than things like stocks and other than things like bonds. And so you’re right. As you look at its relationship to Bitcoin, which certainly took the limelight over the last several months, the reality is I think Gold is due to come back. You look at some of the technicals on gold, whether it’s the Stochastics, the RSI, the MACD, what you’re just basically kind of short term indicators of momentum, but tell you that gold is making a turn as some of that money say the hot money that is comes out of things like Bitcoin.
CHARLES PAYNE: You know, and to your point, they both, to a degree, have the same value proposition, right? It’s all about a play against fiat currency. The thing, though, is gold has like a several century track record against this stuff. And it’s absolutely remarkable if you look at the retained purchasing power of gold. So I wouldn’t be surprised if some people discover it for the first time. And let’s look ahead to next week. Their earnings are going to pick up over 300 names reporting. Give us an idea of some of the things you’re looking at that maybe the viewers may want to be long going into the weekend.
SCOTT MARTIN: Yes, just a few names to sift through. Charles, a few hundred as in, like you said, about three hundred and change. So for us, there’s a couple of names we’ve been picking up recently that have some earnings next week. One of them that I want to talk about today is NextEra Energy in that alternative energy space, wind, solar also doing some heating and cooling improvements as well NextEra as an energy company, Charles, that I think will capitalize on kind of that EV wave, if you will, the electronic vehicle wave the more energy conscious wave that’s out there. So if you look at the chart on this one, two very strong metrics within itself as far as how it’s trading, not a terribly volatile stock either. And one that we’ve added to our portfolio is to add some stability.
CHARLES PAYNE: Scott, you may not know this, but I told people there’s one stock to buy if Joe Biden won the presidency, it was NEE, it outperformed like a beast during the Obama administration. They funneled trillions, billions of dollars into this company, got a bigger market cap than Exxon, ExxonMobil from nowhere. Hey, I got 30 seconds. Nobody talks. Nobody talks about it. The Nasdaq double top, you just mentioned technicals. If it breaks out, where does it go?
SCOTT MARTIN: It goes a lot higher, but you’re right about the technical – the technical is at least very short term, which if you’re trading at home, that’s the stuff that you need to watch. Certainly they’ve turned over again. So, I mean, if you look at stuff like the RSI, you look at stuff like the slow Stochastics, which again, are just momentum indicators. So there can be short term in nature. But the reality is a lot of those things, Charles hit some very big say, multiday highs over the course of this week. So the reality is that’s likely to come back in a little bit. And when those things pull back, that’s when you buy back in.
CHARLES PAYNE: We’ll be we’ll be looking to buy that dip for sure. Scott, thank you, my man. Have a great weekend.
Kingsview CIO Scott Martin discusses the economic reopening, what’s expected over the next two quarters, and preparing to reallocate portfolios.
Station: Fox Business News
LISA KENNEDY: Meanwhile, retail sales in March jumped by buying stuff nine point eight percent and the bar and restaurant industry saw a wonderful thirteen point four percent surge in sales. Keep going to your local watering holes keep tipping, keep sipping. But what does this mean for you and how do you make sure the growth continues so you can get — here with me now, Kingsviews Wealth Management, Chief Investment Officer and Fox News Contributor. Scotty Martin, naughty Scotty with the hotty body – here to tell you how to party. So, Scott, this is all great news.
SCOTT MARTIN: Reminds me of 7th grade all over again. By the way, thank you for calling me. Thank you for calling me.
KENNEDY: I have the emotional maturity of the seventh grader, so that is perfect. So you’ve got low unemployment, you’ve got housing starts going up and up and up. You say the stock market is going it’s set to keep roaring for another two quarters. Where is the bad news? This that sounds pretty great.
SCOTT MARTIN: It sounds too good to be true, almost, doesn’t it? I believe it’s going to be one of these situations, Kennedy, where everything keeps coming in better and better. We see earnings getting better. We see more government spending, people going back to work, potentially if the government’s not paying them not to work, of course. And everything gets really good until we get back to the actual full reopening. And then it’s kind of like, all right, now what do we do? So that’s really the worry, is that for the next couple of quarters, I think we’re OK, which if you’re playing at home, I think is about 180 days, depending on the quarter. The two of them added together 90 days each. That’s quick math without a calculator. Just a cap here in hand. But the reality is, once that day comes, when the full opening happens or re-happens , I guess, as it did once upon a time, you have to be ready to reallocate your portfolio.
KENNEDY: So where should I reallocated – bitcoin? I love crypto.
MARTIN: Bitcoin bars and restaurants, as you mentioned earlier, maybe grocery stores, gas stations, because gas prices, by the way, are out of control. But, yeah, you know, Bitcoin is an interesting call and sort of things like Gold. Those are alternative kind of assets, Kennedy, things like currencies as well that are rallying because of all the government spending and because interest rates are going up. So, yes, I think the traditional portfolio I know this is like super exciting to everybody at home, the traditional stocks and bonds. It is. That’s true. We want to make money. So, yes, Bitcoin and things like Gold, I believe, are good assets to have when this reopening does happen.
KENNEDY: That is so hot, you know, just the idea of walking around with a bunch of gold coins jangling in your pantaloons. And we we’re definitely set up for something. I hope it’s not bubbles. I hope it’s prosperity. And I hope people have the sense that the pandemic is coming to an end and they keep spending and supporting each other because that is what lifts this beautiful free market economy, naughty Scotty Martin, thank you so much.
SVP and Portfolio Manager discusses macroeconomic events moving Futures markets, catalysts for inflation, and some of the trends in the economic reopening.
Kingsview SVP Paul Nolte discusses employment, economically sensitive cyclicals and small caps.