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
Station: Fox Business News
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.
Program: Cavuto Coast to Coast
Station: Fox Business News
NEIL CAVUTO: We got Martin on this. The Kingsview Asset Management CIO. You know, Scott, it’s sort of like all dressed up, but no place to go. So is, you know, hot and very, very excited consumers who want to get their hands on a car, but they can’t find them, or at least the ones they want, and they wait and wait and wait. What do you make of this?
SCOTT MARTIN: They do, and they probably lose interest, Neil, and also don’t even mention the fact that there’s repairs out there that need to be done on some of these cars that folks have that they can’t get done either. So if you talk to a lot of these automakers, if you talked to a lot of the auto dealers? Not only are they having trouble getting materials, they’re actually even having trouble getting workers. So if you even get the materials into the dealership, having somebody to fix it, they’re if they’re actually coming into work is another story.
CAVUTO: You know, this problem doesn’t seem transitory, right? I mean, you and I have gotten into this before this notion that inflation and all these other issues are going to be short lived. Well, we’re past the short lived transitory stage just taking let his reported face value cars right now. This extends well into next year, maybe beyond. What do you think?
MARTIN: Yeah, I think it does, and I’ll tell you what else, Neil, if you just look at the effects that some of the issues have with the global supply chains on on all industries. In fact, if you look at how demand starts to wane because folks lose interest, folks find other things that they want to do or buy. You’re talking about a major effect on just the overall economy, but also in other areas of the economy than just autos. So if you look at the spread, that’s likely you had if this continues, that has a detrimental effect on future growth.
CAVUTO: How do you like the markets now? It’s been a bumpy September typically is, but we can’t get past our own way. Today’s game notwithstanding, what do you think generally has got a lot of bumps ahead?
MARTIN: Yeah, yeah. Yeah, look, I think there’s going to be a lot of bumps ahead. And if you’re a long term investor, you have to take those bumps in stride. Use some of those pullbacks and some of the Microsofts, the Amazons, the Adobe’s the Nike’s to buy in more on your positioning. Because if you see any kind of pullbacks five 10 percent in the market, you’re a long term investor. You have to take those opportunities to load up on some of the positions that may be weak in your portfolio because overall, a lot of those companies, a lot of those stocks I mentioned, I think, are going up into the right in the future.
CAVUTO: You know, you mentioned technology, it’s been taking it on the chin, say Microsoft today. You know, it’s buying back 60 billion dollars worth of its stock. It just raised its dividend 10 percent. It was flirting with the $300 a share before. I don’t know where it is now. If we can pop it up, guys, but what do you think of that?
MARTIN: Yeah, I think the buybacks are key. I mean, if you have a lot of these companies now that are preparing for higher taxes on the corporate tax rate coming forth, you have a lot of cash flow companies that are doing very well in the cash flow analysis. And so therefore they’re looking for something to do with all this. Cash buybacks is one thing. Dividends are another thing, and that actually intrigues investors to go out and buy shares of the companies that are doing that.
CAVUTO: All right. Scott, I want to thank you very much, my friend. Always good catching up with you.
Kingsview CIO Scott Martin discusses why great stocks pull back, and how investors should take advantage and buy in during those shifts.
Program: Making Money with Charles Payne
Station: Fox Business News
CHARLES PAYNE: You know, I was between an uglier and a blob blob kind of week, right, the damage has been limited. We’ve been down a lot. I think the problem, the inability of this market to sort of get off the ground and gain any steam or traction. So what’s awaiting for us? What are we looking at for next week? I’m going to bring in the market pros Rob Luna, Scott Martin and Rob. You know, we’ve seen very low volume the lows volumes of the air this week, so I’m not sure what to make of it. But what are you bracing for? What are you getting out of this market message?
ROB LUNA: You know what I think’s going on right now, Charles? The trends, your friend. There’s a lot of momentum players in the market right now. Momentum ETFs. But think about the seasonality we’re in right now, September October. Those are bad months last year, a bad months this year. The question is why, though people have to pay taxes next month. I think they’re taking profits. Those names are in the momentum names. And with the lack of momentum in the market that we’re seeing right now, I think that’s going to keep money on the sidelines. I think it’s going to be this way a bit choppy for the next few weeks.
PAYNE: So, you know, one thing we’ve learned, Scott, when the market hasn’t had a five percent correction through August, it usually goes up for the rest of the year. It always does. Do you buy a dip to kind of dip their Rob’s talking about?
SCOTT MARTIN: I do, and I think Charles the Strong are going to survive this one, so what that means is it’s kind of like a heavyweight boxing fight, really. And even Mike Tyson in his best days did take some punches, believe it or not, and yes, delivered a lot more of him on his side. But the reality is this I mean, a lot of great stocks. I mean, the Workday’s, the Service Now is the Booking.com, the Adobe’s, the Amazons. These pull back, I mean, they have bad weeks or even in sometimes some cases months that as we believe at Kingsview and a
lot of these companies, long term, you’ve got to take the advantages of these pullbacks to add to strength. Strengthening stocks are strong stocks. They’re strong. So in my opinion, you want to wait for some of those things to come back into you right now because Rob’s right. I think we’re going to have a lot of chop going forward. I think there’s some concern over taxes. For some reason, there’s concern over what the Federal Reserve is going to do, and I think they’re just going to basically stimulate for the end of time. So take these pullbacks in stocks you like to add to your positions.
PAYNE: Not a lot of earnings next week, but we do get reads on manufacturing the retail sector in retail confidence. Less than a minute to go, Rob and we can get you in both Scott. What’s going to be the big mover? What’s going to be the big thing that perhaps moves the needle next week?
LUNA: Yeah, I know. I don’t think there’s going to be a big mover. I think it’s going to be a lot of chop next week. I think investors should prepare for that. And I think, look, you’ve got to look at individual stock selection right now. Charles, look at themes out there like the semiconductors, big systematic thing that we’re going to be seeing for the next year or two years. Look at names like C that are trading at a big discount right now. Pick winners. Don’t wait for momentum. Don’t wait for the news to tell you it’s time to get in and find some of those good names get ahead of the curve.
PAYNE: Scott, you got 10 seconds.
MARTIN: That’s too much. Darden Restaurants and Bloomin Onion too, I think Charles, those are companies that have pulled back restaurants to pull back because of worries about the virus. Well, those are great companies. So when they pull back, buy in.
PAYNE: All right. And Bloom has got one of the coolest symbols in. Hey, guys, have a great weekend, Liz Clemons at the New York Stock.
Kingsview CIO Scott Martin discusses the variance in data points – job numbers, consumer confidence, PMI, and inflation.
Program: Mornings with Maria
Station: Fox Business News
Time: 6:00 AM
DAGEN MCDOWELL: Time for the word on Wall Street. Top investors watching your money. Joining me now, Kingsview Wealth Management Chief Investment Officer, Fox News contributor Scott Martin, UBS Financial Services Private Wealth Advisor Alli McCartney, and Strategic Wealth Partners president and CEO Marc Tepper. Good to see all of you this morning. Scott, let me kick it off with you. We’re standing by for a weekly jobless claims out at eight thirty a.m. Eastern Time. Investors, of course, also waiting on the August jobs report due out tomorrow. The expectation there, seven hundred fifty thousand jobs added to the economy. The unemployment rate ticking down to five point two percent. Scott, what are you watching for?
SCOTT MARTIN: It all sounds awesome, doesn’t it? And I think these days is as untapped. That’s Mark Tepper. If you’re playing at home, if talked about all morning. There’s a lot of variance in these data points now. It’s just not the jobs numbers. It’s consumer confidence numbers. It’s PMI. It’s even inflation. My goodness. So the reality is this, Deighan, I think the market is ready for, say, a stinker to use a technical term here in the job market, because it’s not all bad news, boys and girls, because what that means is that kids, I think we go back to Mark annd I’s, say high school football days when we were stud’s, I think. Right, Mark, this is the lead block that the Fed needs going forward to keep that stimulus train going. If we start getting stinky again, to use that word, jobs numbers here, that allows the Fed to keep the spigot going as far as liquidity to the markets.
MCDOWELL: When you’re talking about the Fed, Scott, before we move on, in terms of the political pressure on Jay Powell, I just wonder and Tep can get in on this later as well. I just wonder, though, that won’t the spigot stay wide open because maybe Jay Powell wants to get another, you know, another term. Just real quick on that.
MARTIN: Yeah, another handful of years. Yeah, totally. And I think that’s the interesting thing is maybe Jay Powell is actually hoping for some disappointing economic numbers so he can justify the liquidy. But let’s face it, I mean, either maybe maybe they’re into the taper as soon as they think or maybe they don’t do the interest rate hikes as soon as they think. What are the other is not going to happen. So as far as the job numbers are concerned, I think the Fed has been right down the middle of the fairway. Another sports analogy. Yes, it’s early with respect to how they’re treating these markets and giving the markets what they need and what they expect. And that’s why we’re at or near all time highs in the S&P Nasci.
MCDOWELL: Yeah, I dare you to work in a cricket analogy. And next time you come on, Ali, I want to move on to you here. Let’s talk about consumer confidence. August, consumer confidence falling to its lowest level since February. And at the same time, we have companies like Costco announcing it’s going to reinstate purchasing limits on select items because people, again, are stockpiling goods as Covid cases. Serj, put this in perspective from a market or investor standpoint.
ALLI MCCARTNEY: Yeah. There’ll be no sports analogies here, I promise I couldn’t if I tried. Maybe lacrosse. I don’t know how that works. So, look, let’s go back to last March when the recovery in the market at least was was really heightened. And we said bull market participants said this is not going to be a straight line recovery. And the truth is that between now and then and very recently, it has been largely both in terms of earnings market numbers and economic information, pretty much a straight line recovery. And now we sit at this inflection point where a lot of the things that we were concerned about that were those downside risks have surfaced. We have a variant that is taxing hospitals and concerning both consumers and producers. Yet again, we have severe weather. We have back to school and we are past peak earnings. And so I think what a lot of the numbers that we’ve been seeing, both the ADP numbers we got yesterday, which were, you know, have 60 percent of what we were hoping for in terms of additional payrolls. I think the jobs number that we get tomorrow will reflect this as well. And consumer confidence, which we did get yesterday, which is the lowest number we’ve seen since February, which think about it, that was like the ramp up of both confidence in the vaccination program. So we’re now sitting at this low where consumers aren’t having checks deposited into their accounts where everybody was, at least where I am in New
York, the thought was everybody would be going back to New York in July and August in September. A lot of that has now been pushed forward as a result of the Delta variant into January. So we have sort of gone like this, and now we’re going to be here for a bit. And I think once we see the Delta variant, once we have a sense of how, quote unquote temporary or transient inflation is, once we have infrastructure kicking off and some more clarity in Washington, I think you will see another leg up
MCDOWELL: your dogs behind you, Ali, and we just love it.
MCCARTNEY: He hears you talking about dogs and there is nothing I can do.
MCDOWELL: It’s been a morning for everybody here in the Northeast. So we love seeing our fluffy little ones. Mark, we briefly mentioned the Fed before. Progressive lawmakers are calling on President Biden to replace Fed Chair Jay Powell, who has been campaigning for reappointment. Meantime, in a new Wall Street Journal op ed, Judy Shelton calls on Congress to rein in the Federal Reserve, calling its power unchecked. Your thoughts on the future of the Fed? And my issue is progressives putting pressure on Jay Powell to be more tough, particularly on financial regulations, banking regulation. I just think that it adds a real uncertainty, not maybe about the role of the Fed that investors might be underestimating.
MARK TEPPER: Yes, absolutely. So, look, I think the path of least resistance is to reappoint Jay Powell, like my man, ScotI Market said he’s been right down the middle of the fairway. I think he’s done a pretty good job. I disagree with his comments about inflation being transitory. I think it’s going to be a little longer lasting than that. But that’s a different story. When you look at Jay Powell, he’s got public support from senators on both sides of the aisle, even Janet Yellen, who supports his reappointment. And when you when you try to figure out what the market impact is going to be here, I think here’s what investors need to know. If Powell isn’t reappointed, the Fed’s going to become even more dovish. So that should continue to prop up stock prices. And right now, it’s essentially a two person race between Powell and Brainard. And dig into your point. Brainard is a left leaning enough that she could potentially transform the Fed’s mandate. Right now, it’s all about full employment and price stability. She could align the Fed more with Biden’s priorities on financial regulation and, of course, racial equality. Climate change. Right. But at the end of the day, here’s what I think happens. I think Powell gets reappointed. I think Brainard gets elevated to vice chair so that there’s some extra influence there. And I think you’ll end up getting more regulation in the financial system, probably a bit bearish for financials and crypto. But I think more of the same for everyone else.
MCDOWELL: Thank you so much, Mark. You sit right there, Scott Martin and Alli Macartney, thank you so much for being with us this morning. And hold that dog close, Ali. Much more ahead
MARTIN: Tell him about the Chewy earnings.
MCDOWELL: Yeah, exactly. Much more ahead this morning.
Program: Your World with Cavuto
Station: Fox News Channel
NEIL CAVUTO: You like telecommuting or just not being in the office? Well, apparently a lot of your bosses, a lot more companies are saying they’re fine with this continuing in some cases for another month or so past the September promised return to work to as well to twenty twenty two January, February, you name it. Welcome back, everybody. I’m Neil Cavuto and focusing on companies that are now allowing their workers to keep doing the virtual thing virtually, right? Well, for months, maybe quite a few months to come, the implications of this was Scott Martin, family expert, readers of the financial and other markets. Kimberly, the message from the companies is it seems to be working for us right now. We’d prefer in person, but now we’ve got these spikes in cases, the uncertainty about mass, what to do. So keep doing what you’re doing. What do you think?
KIMBERLY FOSS: Yeah, it’s just difficult, Neal, I understand that they want to be safe and they want to do the right thing, but at the same time, eventually we have to go back to work, because the bottom line is just the quality of work, the time it takes to get things down. I can tell you in my own practice, when we try to get software service, you’ve got the lady on the other end trying to help us. But she’s got the screaming Mimi in the background. And the bottom line is it takes us four phone calls for phone calls to get what I could have done with one person in the office focused on what our situation is, which then takes me more time, takes my employees more time, it takes more cost. I can’t be as profitable. That’s the end of the story. We need to make a profit.
CAVUTO: OK, you sound like a workaholic, and we’ve got to talk about that, because that’s a separate issue for you. But let me let me get to you, Scott. All kidding aside, these same companies are saying on the flip side of this that, yeah, we’ll let you continue working for them depending on where you work. We’re going to cut your pay. Google has already hinted that maybe pay cuts of up to 10 to 15 percent because you’re not commuting, you’re not as
expensive a local. And so why should they pay you that much? What do you think of that?
SCOTT MARTIN: It’s interesting because that’s kind of been the dark side of this option of how much we care about you as an employer. It’s like, yeah, you can do all this cool stuff, work from home, work by the pool, you know, take the dog out and do the conference calls, you know, on the street. But, oh, by the way, you’re going to get 30 percent less. I’m going to cut your other benefits, too. And that’s the goofy part of this whole thing. And Kim touched on it, getting back to the regular economy and the regular style of work. I mean, we’ve got an office here of about 15 people and we got about half of those folks back in. And it, myself included, think about when you’re going to work on a daily basis. You’re going to the bar, to the restaurant, to the dry cleaners. Yeah, because, like, this suit doesn’t clean itself, by the way. And that’s usually in that order of which I’m doing things. And you’re not going out spending money, you know what I mean? You’re not stopping at places along the way where you’re creating economic activity, you’re staying home, you’re staying inside, and you’re not going out. And you’re not generating kind of that economic growth, that economic activity that we’re so used to that the markets need, I believe, to stay at these levels.
CAVUTO: You know, I look at the markets, though, Kimberly, and, you know, the Dow and S&P were up again today. That makes, you know, four days in a row of records for them. So they’re panicking about it. They’re not showing it. And I’m just wondering whether it’s their belief we’ll get through this. Everything’s going to be fine. The earnings certainly have been fine through the pandemic. They’ll get even better the more even if it slowly pull out of the pandemic and they just see everything half glass full to you.
FOSS: Yeah, I think that they’re shrugging this Delta variant off and by the way, Neal, this is not the only variant that’s coming out, right. They’ve got variants out to two thousand twenty three. So interesting how they know that. But that’s another subject. But at the same time for. You just just a little area. You’ve got four point five truly trillion dollars on the sidelines to throw in money market and money goes towards best reward and is not getting rewarded in money market account. So you are going to see more money committed to the market. I think this is going to be a slight pullback. But what we pivot, that’s what America does so great and entrepreneurs do so great, they pivot,
they’ll figure out a way at the front door is locked. We’re going in the side door, the little door in the basement. We’re going to get in somehow some way. And that’s. What about capitalism and the investor?
CAVUTO: Well, I’m going through the refrigerator door myself, but I understand what you’re what you’re getting out there with this migration that’s going on. Guys, I want to thank you both very, very much.
Program: Making Money with Charles Payne
Station: Fox News Channel
CHARLES PAYNE: All right, so all week we’ve been talking about ways that you should own the future, part of the future, of course, includes how we’re lured off of our sofas and to certain industries where businesses are somewhat struggling. The answer, of course, is always going to be technology. I want you to check out, for instance, this Taco Bell define now they call it that because it defies the norms and it will define the future. It’s got a very small footprint, but technology actually allows it to serve more customers. It looks so cool. And imagine you go to a late Friday night after you had a few. Right. And then there’s this Nike store in Seoul, South Korea. This is amazing. They call it the Nike Ri’s. It’s designed to merge digital and physical for what they call a unique, immersive shopping experience. It’s all cool stuff. It also means really big money for investors if you know where to look. I want to bring, in King’s view, wealth management. Scott Martin has got a lot of this. Is that radio frequency ID stuff you see with those Amazon grocery stores and you go in, you put everything in a basket and you leave. Right. How can the audience get a piece of that action?
SCOTT MARTIN: Yeah, and it’s action that’s going to happen a lot going forward, Charles, just as kind of, I guess, the post pandemic retail environment emerges. And just as an aside, any any time you talk about Taco Bell or weave that into a stock story, you’ve got my attention. Love Taco Bell, hard core. That’s Yum Brands, by the way. Here’s RFID technology, though. RFID technology, though, that looks good to us. Charles is in Zebra Technology’s great, fundamentally strong company, has rallied a lot in the last several years, even pre pandemic, just because these guys are dominators in the space. So zbra is one that we actually like here to further take advantage of the trends going on.
PAYNE: I’m going to toot my own book for a moment, I have an entire chapter dedicated to Zebra in my book, Unstoppable Prosperity. Folks, you have to read how I discovered Zebra, how you can discover things every single day. Connect the dots and you can make a fortune. I digress. Let’s talk about these retailers and restaurants themselves, though, because I got to tell you, I think these retailers, a lot of them are going to survive. The stocks are already acting fantastic. A year ago, everyone hated Coles. I’ve seen upgrades on that. Everyone hated a lot of these other names. Or what are some of the names you like there, Scott?
MARTIN: Yeah, a lot of fun, a lot of ones that were it was like TJX, which is one that we own and we have owned that for a while. Charles, a couple other names, I guess I’m a little embarrassed to talk about because they’ve been awesome, but they were funny at the time. I mean, we could go back in the tapes, you know, when we were talking about this retail re-emergence. How about Darden Restaurants? How about Bloomin Onion? Yeah, Outback Steakhouse. And those guys like those are companies that have really done the following, Charles. They still have the room dining. They still have the traditional kind of dining experience, but they have totally shifted their business lines to the pickup in the carry out and so forth like that. They’ve got good food as well, like Taco Bell. I’m saying that kind of with a straight face here, but that’s food I like also, believe it or not. So those are areas, too, and restaurants that I still believe are set to emerge. And they’re ones, too, that you need to take advantage of when you see some pullbacks like we have in those stocks in the last couple of months.
PAYNE: All right, so we talked about the future, let’s talk about the past, this Sunday will be the golden anniversary of Nixon taking us off the gold standard. You’re a gold investor. You think it was a mistake? I mean I mean, obviously, I think it’s too late to ever go back. But if we could, would you.
MARTIN: No, I wouldn’t, and I think we’ve got to be grateful that we’re not. And yeah, you know, I’ve been called Goldmember on Twitter and on on Facebook and Instagram because we love gold, you know, like like Austin Powers used to say or the act used to say, Mike Myers would say, as he was gold member in the movie, because gold to us has value in the sense of Charles. When we invest our clients money, it’s not stock and it’s not fixed income. It has its own kind of correlation value amongst traditional asset classes that many investors hold. And therefore, that’s why I think gold going forward, it’s going to be a great addition to your portfolio.
PAYNE: I’m going to go back a little further and talk cool real quick. It’s up one hundred fourteen percent. I think it keeps going in part because of China. Is there a way for the audience to make money there?
MARTIN: Sort of you know, it’s funny with Coal, I don’t have the onions, let’s say, to jump into coal here, given the crazy move. I mean, you look at coal prices, like you mentioned the last few months, it’s wild. I actually believe kind of the forgotten peace to this whole energy scenario is a natural gas. Cheaper, easier to get. There’s more of it. So UNAGI is an ETF that tracks the futures price of natural gas. It’s trailed coal, its trail, this whole move. It’s the hated kind of partner, if you will, or the hated kind of alternative. And that’s when I look at as maybe playing catch up here.
PAYNE: Scott, you gave us a lot to chew on. Pun intended. Have a great weekend, my friend.
Program: Making Money with Charles Payne
Station: Fox News Channel
CHARLES PAYNE: Now i’d like to bring up Fox Business contributor from Kingsview Wealth Management, Scott Martin. Scott, I want to pick up on that conversation with gold. You’ve been in gold here. You talked about being long. It it’s kind of stalled a little bit. Are you, though, convinced it still has the ability to be a hedge against inflation in a store of value?
SCOTT MARTIN: Yeah, and Charles, we also like it because it’s not a bond position and it’s not an equity position. So if you’re adding gold to your portfolio or looking to do so, I think you get a check out the correlation value that it presents to a portfolio. Because you’re right these days, with so much uncertainty ahead, both in the economy and what with D.C. and with the Fed is going to do going forward, as you were just discussing, gold can actually come in handy in either of those times when either we’re stimulating or pulling back stimulus because you’ll see people flee the volatility of the equity markets and go into gold as a solution.
PAYNE: You’ve expressed at least earlier this year, you expressed some concern about the junk bond yields, you were worried about how low they were, they’ve only got lower. What does this say? I mean, what’s the message here and what kind of adjustments, if any, have you made because of this in your portfolio?
MARTIN: Well, we still own junk bonds, but you’re right. I mean, the yield on junk bonds is meager at best. And so it’s just a liquidity rush, really, Charles. I mean, people investors are out there seeking any yield they can find anywhere in the bond market. So that to me is another kind of indicator of things, just getting a little bit overcooked here on the bond side. So when you’re looking at yields, seeing the 10 year Treasury, as you were just talking, I think we’ve probably seen the lows or come pretty close to him for the year and we expect yields to start rising here in the next few months.
PAYNE: Last time I saw you, you were getting a little bit more aggressive on the equity side were, you know, by the way, where where are you most concentrated, your biggest investments yet?
MARTIN: Consumer discretionary, mainly, Charles, as the reopening keeps happening, the consumers in the best shape they’ve been in many, many years. So we like the consumer discretionary names, the Amazons of the world. But so far, yes, we’ve been adding to things like I mentioned last week, that drop on, say, good news. We’ve had a slew of earnings reports come out that have been relatively good. Things like Apple and other technology companies have pulled back some. We’ve been adding on those dips because the long term story is still in place for a lot of these companies. And on short term weakness, that’s when you got to get in and add to those positions.
PAYNE: Hashtag buy the dip, I’m with you, my man, I think people are nuts. I don’t know who’s selling it. It’s just the computers, the algorithms. But if you are selling Apple and Amazon and those kind of earnings, you know you’ve lost it. Hey, Scott, thanks so much. Appreciate it.
Program: Making Money with Charles Payne
Station: Fox News Channel
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.
Program: Cavuto Coast to Coast
Station: Fox News Channel
DAVID ASMAN: But first, inflation and inflation, is it permanent or transitory? That is the question the Fed is debating as we speak right now. We’ll hear about their decisions coming up. But markets are on edge, waiting to hear whether the central bank will pull back on its money printing sprint. Our all star panel is here, Kingsview Asset Management CIO Scott Martin, Fox Business correspondent Susan Li, and Through the Cycle, president and founder John Lonski. A great panel. Thank you all for being here. So, Susan, what are the markets expecting? They seem not to not to be too certain about what’s going to come up.
SUSAN LI: Yeah, well, what does transitory mean? Because before you’ve heard the Federal Reserve say maybe two to three months and now is it for the rest of this year? We know that inflation has run hot now for the past three months. You have a five percent increase in prices, consumer prices, the fastest, two thousand eight. So I guess the discussion is when do they take away the punch? Bowl is a twenty, twenty two. And then do you get the first interest rate increase in twenty, twenty three? I think the markets are passing and looking for some sort of wording from Jay Powell later on today.
ASMAN: Scott, which way. You bet.
SCOTT MARTIN: Expecting not much, David, actually, I think the real news is going to come out in the Jackson Hole meeting in a few weeks here, but I’ll tell you what else is going on here, David, is you talk about this transitory notion of inflation. Susan’s right. The setup is exactly correct. It was a couple of months and now it’s several months. And as long as they keep using that word along the line, I guess it’s still transitory. And I’ll tell you, interest rate projections are hard to handicap right now because we’ve got softening economic growth coming down the pike here in Q4 and Q1 of next year, which probably puts off the rate hike at least another six months into two thousand twenty two.
ASMAN: Well, John, earnings, of course, are looking in the rearview mirror, but we have these spectacular earnings yesterday, almost 60 billion dollars between three companies, Microsoft, Apple and Google or Alphabet, as it’s now called. So you had these spectacular earnings from the high tech companies. You still have a lot of demand out there. There’s this pent up demand. People with a lot of cash, they want to spend it. But you have a labor shortage. You have you have inflation. You have certain pushbacks on supply, supply chain, mess ups and and strangulations going on. So. So what’s your bet on what the economy is going to be doing in the months to come?
JOHN LONSKI: I think the economy’s going to slow down. We have had a number of downward revisions for predictions of economic growth during the second half of this year. You know, we had, for instance, GDP now by the Atlanta Fed earlier. They thought that the second quarter and we’re going to get a report tomorrow on second quarter GDP, the second quarter GDP growing by something faster than 10 percent. Since then, that forecast has been lowered to seven point four percent. Basically, David, what is happening is that price inflation, higher prices are beginning to take their toll of household expenditures. The best example, housing. New home sales in June were a disaster, down nearly seven percent monthly, down 19 percent from a year ago, despite still very low interest rates. I think the Fed is quickly finding that it’s going to be between a rock and a hard place. If it hikes rates to try to cool inflation, it will hurt the economy. If it does nothing faster, price inflation will lead to pullbacks by consumer spending.
ASMAN: But, Susan, they’re going to have to rewrite their mandates, if that’s true, because they have two major mandates. One is for price stability. As we talked about, there isn’t much price stability right now. Inflation is going up. There are even signs that it could be double digit next year if if that’s conceivable that we could go back to the late 70s. And the second mandate is on unemployment. Well, we have nine point three million unfilled jobs. Yes. They might not be paying as much as the government is for unemployment benefits. But the point is we don’t have an unemployment problem right now. So is the government just getting in the way
LI: And finding the workers to fill those jobs? And they also say that there’s a Fed put out there being that there’s a third mandate, which is to protect the stock markets, because a lot of people on Wall Street says that if we see the stock market fall 10 percent, you bet the Fed will step in at some point, as we saw in the depths of March last year, which they should have done. But, yeah, there are concerns that right now maybe the economy is running too hot. There are a lot of jobs out there, not the right people to fill it. And maybe it is time to take away the punchbowl. Now, if you take away stimulus, it doesn’t mean you can’t be reinstated once you see some sort of slowdown or some sort of hiccups in the economy.
ASMAN: But but but right now and again, Scott, it has to be the last word. I’m sorry, John. We’ll get back to you. We’ll start with you the next round. But but the fact is, is that we have the government just getting in the way of this amazing emergence from from all of the lockdown’s, which was creating all this spectacular growth. I’m wondering if the government is causing more problems than they’re solving right now
MARTIN: For sure, David. And creating new problems every day. It’s the classic case of government knows best. Government knows how to do best with your money, not you, yourself, the business owner or the spender. And that’s really where I think we’re at this crossroads here, because the Fed has done what they needed to do. The government has gotten in the way and created more inflationary pressure. And they seem to keep doing that with some of these crazy spending packages that have yet to be passed through Congress.
ASMAN: A panel this good should not be missed in their second round, which is coming up later in the hour. Good to see you guys.
Program: Cavuto Coast to Coast
Station: Fox News Channel
DAVID ASMAN: Well, meanwhile, Beijing’s crackdown on US listed stocks is fueling a record drop in those stocks. Let’s bring back Scott Martin. Susan Lee and John Lonski. Good to see you all. Susan, what is going on in China right now? I mean, President Xi is a communist, even though he’s allowed you know, he sits where he does because of the sort of free market pushes of his predecessors. Is he going back to the old a stricter communist model of dealing with the economy?
SUSAN LI: Well, if you ever go to China, you’ll see it’s actually a very capitalist society. People there just want to make money and make their lives better. But there’s a lot of debate in terms of what exactly is a long term goal of Beijing and Xi Jinping and the Communist Party. Because really, when you’re clamping down on big technology like they have been in the last few months, you’re really cutting off your nose to spite your own face. Right. So what is a long term goal? Is it just domination, control over data, over the economy, over the markets? Or do you want your home grown talent to make lives better for the billion people that live in the country? I think there’s a lot of debate about that. But I will say that Bitcoin has actually benefited from this clampdown. A lot of money has been taken out of these Chinese stocks and worse two day wipeout since, two thousand eight. That money has gone into other assets, speculative assets like Bitcoin, John.
ASMAN: So far, the Bush administration hasn’t really changed that much. The policy of the Trump administration, one of those rare things where it hasn’t undone the good stuff that his predecessor did. But do you think that will last or do you think we may have sort of relations with China that perhaps a lot of people would would would voice their opinions against?
JOHN LONSKI: Well, I think the Biden administration will continue to take a critical view of what is taking place in China with the intentions might be they will be very wary of attempts by Chinese companies to purchase U.S. companies. And Susan, I think put it quite well. The Chinese government appears to be shooting itself in the foot. I mean, they have a very creative, innovative, highly educated population that could do wonders at creating wealth for China. And yet they seem to be putting limits on the ability of the Chinese economy to grow. And this brings up an important point. You know, years ago, the 1950s, high ranking U.S. academics, Paul Samuelson made the argument that the Soviet Union would surpass the US economic never came close to happening now. And the more you try to stifle initiative in an economy, the less likely is the economy to reach its full potential.
ASMAN: Well, Scott, on the other hand, you see all those people there at one point, four billion of them, and companies like Coca-Cola and the others at Nike that have their their fingers all over the place are willing to forgive all of the problems that China has. They’re willing to kowtow to the Chinese Communist Party to to maintain their market share in China. But and this is a very important but that I want you to deal with. You have the issue of the pandemic. We will not forget where the pandemic came from. We will not forget the way they unleashed it by allowing the people from move to travel to Europe and to travel to us and infect the rest of the world and perhaps perhaps having invented it inside a lab. Won’t there be repercussions from that that will affect economically our relations with China?
SCOTT MARTIN: Well, there should be, David. I mean, I’m waiting for the administration every day to do something about what happened in the Wuhan lab a little over a year ago. And certainly if you look going forward and based on history, you can’t trust China, whether it’s economically, whether it’s medically. We don’t have a friend there, obviously. And if you look at back, you know, earlier this month, they had the hundred year celebration, I guess it was, of the CCP, which was highly their militaristic. It was highly affronted to the rest of the world as some of the comments that President Xi made versus the other rest of the world leaders and rest of the world countries about what the Chinese government was going to do to people. And so, look, going forward, if we think we’ve got a friend in China, we’re sorely mistaken and it’s already costing them internally. Yes, a lot of money as far as how they’re clamping down on their own, their own companies, but also what it’s doing to some of our companies that are trying to get in there and do business
ASMAN: Susan,John Scott, what a great panel. Thank you all for being here. Appreciate it. Well, it’s one of the.