CIO Scott Martin Interviewed on Fox News 12.21.21 Pt. 1

Kingsview CIO Scott Martin discusses patience with the market, buying during the dips, earnings reports and profit margins.

Program:  Cavuto Coast to Coast
Date:  12/21/2021
Station:  Fox Business News
Time:  12:00PM

NEIL CAVUTO: In a corner of your screen there, you’re noticing that stocks are spreading ahead, and it’s a reminder that every time the market gets shellacked, even though in this case it was a significant shellacking over three days. You are richly rewarded if you just stay patient and you’re buying the dips. In fact, history suggests that you’re a dip. If you don’t do that, eventually, that won’t always pan out, but it is today. Scott Martin with us. Scott, what do you think of that strategy? It’s richly rewarded investors, if they just hang tight, can’t always be that way, but it seems to be again not making a big deal out of one day. But what do you think?

SCOTT MARTIN: The riches do come, Neil, and the riches come to those who are patient in those who stay on the path, I mean, as an investment adviser. Every day it’s like you’re either looking at stocks to buy or you’re you’re psychologically counseling clients to just hang in there. In fact, NeIl, to your point about, you know, don’t be a dip and buy the dip, find that cash or find the wherewithal to maybe rebalance some of the names that are doing better or worse, depending on the day, and start allocating to names that look really bad. You know a couple of things in the last couple of days in the energy space. The materials space. Some things we talked about last week on the show are names that are just way down and completely indiscriminately sold, and ones that they feel terrible when you put the buy order in on them. But they’re ones that really start to bounce on days like today because they get so hated on those down days like we saw earlier this week and late last week.

CAVUTO: How are you playing next year, Scott? Normally, after three years of double digit, heady double digit advances over 20 percent year in and year out, at the very least, I’m on the fourth year you’d see things dramatically slow down, I think the Wall Street Journal had said last week maybe no more than two or three percent next year. Where are you on this?

MARTIN: Yeah, and 2020 was supposed to be the Great Depression, and twenty twenty one was going to be bad. Well, because, you know, it’s like the more I hear those predictions, Neil, the more I’m like, OK, here we go to all time highs. How I’m playing it next year, I’m probably sucking my thumb a lot, hiding under my desk, forwarding my calls just because sometimes I mean, we’ve talked about this to me in the last few weeks. Sometimes it’s best to just kind of turn away a little bit and think about how stocks are positively sloped over time. Think about some of the earnings reports that we’re seeing from the Apples and the Adobe’s and the visas and all those companies out there that are so part of our daily lives and there are so great product developers and their parts of our future that we know we’re going to have in our lives. And you just have to be confident that these companies are going to figure out they’re going to figure out profit margins, they’re going to figure out hiring, they’re going to figure out R&D. And those are the companies we want to own in our stock portfolios. And those are the companies. Frankly, man, as we’ve heard those dire predictions. Those are the ones that always beat out those predictions and return well to our investors.

CAVUTO: Now, would they include the big well-known names that have run up far and fast anyway, the Amazons, the Apples and Microsofts disproportionately weighted in technology? I know. But how do you how do you pick your winners that have a winning record when it comes to earnings and even company forecasts that right now are holding up pretty strongly?

CAVUTO: We call this a pregnant pause.  I apology for that.  Just to let you know, here one of the things they do look for technology stocks. Part of this report was because they were disproportionately running up, returning about 40 percent last year, 35 percent the year before that 36 percent, I think the year before that, that they’re due for a slowdown, no matter how spectacular their earnings and their guidance looks. There is no way of knowing that, but that is just one of the things that’s out there and one of the points that I had wanted to raise with Scott. But I apologize for those technical difficulties. They are not micron related.



CIO Scott Martin Interviewed on Fox News 12.21.21 Pt. 2

Program:  Cavuto Coast to Coast
Date:  12/21/2021
Station:  Fox Business News
Time:  12:00PM

NEIL CAVUTO: Scott Martin on all this, Scott, keeping the politics out of it, does anyone ask the typical consumer or resident how he or she feels about this? Because invariably it’s going to mean higher energy costs? Say what you will on natural gas. It’s a cheap, efficient and still clean use of energy. And now they’ve got to seek out alternatives that are all going to be pricier.

SCOTT MARTIN: Correct. It’s all fun and games, Neal, until your wallet gets hurt, and I think that’s really one of the issues and in fact, one of the issues that we’re seeing really around the country now. What’s funny about this is if you go to Texas, to Arizona and most likely Florida as well as I put that cut into that category, you get to choose and they’re blocking the effort by governments locally to make consumers choose the electricity over natural gas because to your point, in the lead in with Lydia. Natural gas is something that, depending on how you how you use it, it’s it’s cleaner. It’s everywhere, it’s abundant, the United States, and it’s cheaper. So let’s naturally get rid of it and not use it and go to a power grid that doesn’t have the capacity, let’s say, for everybody to latch onto it or in some cases, the the electricity generation is not as clean. So when you look at it overall as a consumer, I think you think about it both how it’s going to impact your bottom line. And frankly, is it going to be that much more efficient and when it comes down to it being forced as a consumer to choose something over another because the government tells you to do that doesn’t leave the best taste in your mouth.

CAVUTO: What do you think of energy stocks in general? Energy contracts themselves because they’re getting whipsawed, certainly by Macron, and maybe some of these efforts to target more traditional forms of energy for 2022, How does a Scott Martin play it?

MARTIN: Scott Martin plays it with a lot of love, a lot of energy, love materials, and what’s funny is, Neil is that since Joe Biden has been in DC. Would you be surprised to know that the energy sector, the Chevron, the Exxon’s of the world are some of your best performing of the sectors out there? He hasn’t been 500 since this war on oil has been going on. It’s only now actually crude the stocks. So I believe that there’s going to be a lot of conjecture. There’s going to be a lot of back and forth with respect to how the administration is going to tackle the energy crisis or lack thereof that may be going on in the country. And so there’s going to be volatility and money managers, as advocates for clients were using that volatility, Neil to add to positions to put in new positions when they fall like they did yesterday, for example. And if you look at today just down in the lower quarter, their energy is one of your best performing sectors today as we’re getting the market rebound.

CAVUTO: Yeah, they are disproportionately weighted to when some of these populations, including the Dow, thank you very much, Scott. Good seeing you again, my friend Scott Martin on those developments here.



CIO Scott Martin Interviewed on Fox News 12.15.21 Pt. 1

Kingsview CIO Scott Martin discusses recent market response, stocks and bonds, a possible rate hike and the potential for a rally at the beginning of the year.

Program: Cavuto Coast to Coast
Date: 12/15/2021
Station: Fox Business News
Time: 12:00PM

NEIL CAVUTO: We have Scott Martin here right now to see how much further we can get the lawyers attention Scoot is the Kingsview Asset Management CIO, Fox News contributor as well. You know, Scott, you know, Charlie, I would bounce around this idea of what the Fed will line up. Maybe not line up, but I’m just wondering what you think the markets do in response. The more specific Jerome Powell is, maybe the more worried they get, the more general its tone, maybe the more worried they get on top of that. It’s a no win situation for him today, isn’t it?

SCOTT MARTIN: Yeah, and he’s been specific, Neil, and that hasn’t worked out too well for him, as you and Charlie just discussed. Now what’s interesting is when you’re talking about the market’s reaction, I think you’ve got a tale of two cities there. You’ve got stocks which are generally weak or meandering at best. And then you’ve got bonds which have been going down in yield and up in price. So if he is indeed going to do two or three rate hikes next year, as one of my friends best says, the market has a funny way of showing that they actually care because rates are down. Since the Fed projected more interest rate hikes coming down the pike versus rates going up like they would be coordinating with the Fed,

CAVUTO: What is that telling you? Normally you would. You would glean from that. They’re looking at a slowdown.

MARTIN: Yes, I think you’re exactly right, and I think they’re also looking at the bond market that is looking at inflation possibly getting a little tamer in two thousand twenty two. So maybe the Fed seeing the slowdown and seeing that inflation may get a little bit more under control because it is slowing at that pace that it’s on right now. You maybe have less rate hikes than we actually think we projected so far.

CAVUTO: So the market and whether it’s returned and that’s always a debate. I’ve talked to some analysts who say, you know, given the strong earnings, you know, the multiples aren’t nearly as out of whack as you would think. Where are you on this?

MARTIN: The market’s high, but it’s not extremely overvalued. You’re right. If you look back at ninety nine, if you look at twenty seven, the market was trading depending on the index. Twenty five, thirty times. Right now it’s trading at twenty one twenty two, so it’s up there. It’s just not all the way where it was in past bull markets. So in our opinion, if we continue to get strong earnings and we continue to get an expansionary fed where maybe they hike rates later in twenty twenty two, I think you still see this market recover and rally at the beginning of the year.

CAVUTO: I’m taking a look at where you would put your money as you sort of wait this out. How do you play this?

MARTIN: Yeah, we’ve been moving stuff around a lot actually in the last couple of months, just because the market’s been kind of ebbing and flowing. We see certain sectors outperform some days and underperform other days. So what we’ve been doing, Neil is putting more money into some of the inflationary, let’s say, affected areas are looking at materials and energy specifically to take advantage of what is still a largely increasing inflationary environment.

CAVUTO: Got it, my friend. Thank you very much, Scott Martin. We’ll be hearing from a little bit later in the show.


CIO Scott Martin Interviewed on Fox News 12.15.21 Pt. 2

Kingsview CIO Scott Martin discusses Elon Musk and Tesla, spending problems, and whether expenditures will come under control.

Program: Cavuto Coast to Coast
Date: 12/15/2021
Station: Fox Business News
Time: 12:00PM

NEIL CAVUTO: Scott Martin joins us. He always says controversial things, but you know, he’s good at what he does as is Susan

SCOTT MARTIN: By accident,

CAVUTO: by accident. I hear you, buddy. They it very nice hair, very nice hair. Scott The most important question, then, is with all the money. Why does why does Elon Musk cut his own hair? What do you think?

MARTIN: Well, from a guy that doesn’t cut his own hair, I think he feels like he can do anything he wants. And as Susan said, he’s the richest man in the world. A lot of that is stock options, but he’s created a lot of wealth for others to make money besides employees, also investors. So I think Neil, he kind of goes to the beat of his own drum and obviously, depending on who he’s attacking over Twitter on any particular day, he tends to win those arguments too.

CAVUTO: You know, and and you raise a good point when talking about, you know, we tend to look at these things linearly, like how much you’re paying a tax. It turns out he’s spent quite a bit in taxes. Thank you. But even if you were to take and confiscate all the funds of the richest, it wouldn’t come close to addressing, you know, the twenty three, twenty four trillion dollars in debt. We just pile up pile up. That isn’t the result of not taxing them enough. It it’s really the result. And this has happened to Republican and Democratic administrations alike of spending much, much more than we have.

MARTIN: That’s right. It’s not a tax problem. It’s a spending problem. And obviously, if you look at the Treasury Department receipts over the last several years, we’re at record levels. So that tells you they have the money, they just overspend. So will they ever get it together as far as the Democrats or Republicans no, because the government likes to spend and where they spend on things that are actually worthwhile or whether it’s or whether it’s waste fraud and abuse is up to anybody’s debate. But the regardless point is that they do overspend and they have the tax dollars to actually be a little more responsible. But they’re not, you

CAVUTO: know, long before you were born, probably when we had the the Bill Clinton internet boom going on and we were had surpluses for a while. It really took something like that to to pay our, you know, our debt down to size. Certainly, the deficits went away and started surpluses. But short of something like that was, do you ever think we’ll we’ll we’ll get this solved?

MARTIN: I don’t know, because it’s kind of funny money, I mean, the dollar is the world’s reserve currency to add an increase in the debt ceiling, as we just recently did, or to add numbers to a balance sheet that’s at the Treasury Department is a win. It’s not really anything that takes a lot of work. So there’s really no adult in the room when it comes to the spending that we get out of D.C. and therefore I don’t think they’re going to stop.

CAVUTO: All right. We’ll watch it closely. Scott Martin, thank you very much.


CIO Scott Martin Interviewed on Fox News 11.12.21 – Your World With Cavuto

Program: Your World with Cavuto
Date: 11/12/2021
Station: Fox News Channel
Time: 4:00PM

NEIL CAVUTO: Let’s take a look at the corner of Wall and Broad today, all the major market averages up on the day, but down on the week. What is interesting to discuss as the markets continue to hum along bumpy days notwithstanding, is what is driving it right now. And it could be again, this is on the week we were down, but we had appreciable advances on the day again on talk that maybe this package, the big one, the one point eighty five trillion dollar one doesn’t get done this year might be even dicey for next year. Now we’re coming to discover that a lot of the tax hikes that a lot of folks were fearing might not materialize either. Or at least they’re being watered down. Welcome news to Scott Martin, the Kingsview Asset Management market watcher here. Now to weigh in Scott, could some of the market’s resilience be the growing expectation that this package won’t be what they feared if it comes to pass at all?

SCOTT MARTIN: Yeah, it definitely could be. I mean, you look at the infrastructure plan itself over the last several months, it’s come down in price. I mean, I guess we’re kind of lucky that it’s just a nose about a trillion because it started well above two trillion. I think Biden wanted even higher than that. So I think you’re right. I think the market is starting to see maybe through the clouds here that maybe a lot of this stuff isn’t going to be as onerous as feared. But the reality is this we still don’t have it paid for Neil, and we’re coming up on 30 trillion of dashiell debt. We still don’t have a tax plan in place to cover a lot of the prices or covers at least a lot of the cost of this thing. So with respect to how the Biden administration not only sells it to Americans but pays for it, that’s really where I think things come out in the wash when we see what the markets do in response and

CAVUTO: very strange sort of an upside down settlement in terms of cobbling this together. Scott, where you probably heard that they want to get salt in this, that is the lift the limitation on state and local taxes from ten thousand maybe as high as 80000 or more. The beneficiaries will be the very rich who were supposed to get gouged by this in the first place. That’s not sitting well with a lot of Democrats. I’m wondering if that’s a sign this thing could look bumpy.

MARTIN: Yeah. And I think if you look at the impacts that the inflation situation has had on the lower and middle-class Americans that Biden professed to absolutely protect and the overall economy, those are the folks that are actually suffering big-time from what’s happening in the administration. So with respect to how they’re handling things, and as you mentioned earlier, with respect to going out and spending over the holidays, filling up your car with gas, buying things for the kids, a lot of Americans are seeing the pinch that the inflationary craze is having on their wallets.

CAVUTO: Are they growing frustrated right now that whatever gains they’re seeing in wages and the administration’s argue that that’s the underlying strength in the economy and this supply and demand issue is is really a reflection of the strong economy that’s tough to sell people who are maybe earning more, but paying out more.

MARTIN: Yes, and President Biden has said that this is actually a wage phenomenon with respect to how strong the job market has been. That’s partially true, but if you look at the inflation rate and its increase over the last several months, it’s well outpacing wage increases. So if you’re somebody that’s making more wages than you were, say than the pre-pandemic, you’re seeing higher prices on what you’re spending. So that gap is definitely widening. And something that you’re going to feel definitely over the holidays.

CAVUTO: All right. We’ll see what happens. Got very good. Catching up with you. Scott Martin.


CIO Scott Martin Interviewed on Fox News 11.10.21 Pt. 2

Kingsview CIO Scott Martin discusses the Strategic Petroleum Reserve, inflation and what we might expect at the pump.

Program: Cavuto Coast to Coast
Date: 11/10/2021
Station: Fox Business News
Time: 12:00PM

NEIL CAVUTO: All right, let’s get to read on all this from Scott Martin. Scott, I’m just wondering, let’s say the administration goes through with plans to tap the Strategic Petroleum Reserve is a lot of at least 11 Democratic senators have urged without looking at increasing oil production in this country. Isn’t that like a Band-Aid approach? In the meantime, yeah.

SCOTT MARTIN: Just what I was thinking, Neal. A temporary fix to a long term problem is you and Dan just talked about. I mean, sure, you can tap the SPR and maybe alleviate some of the price pressures that we’re seeing in the holidays. But come January, February, March and beyond, you’re going to see the administration’s attack on fossil fuels, especially oil. So you’re going to still have price problems next year. And you’re right about just the process by which the administration has attacked the pipelines and just driven up price. And we’re starting to see that now come through.

CAVUTO: Let’s talk a little bit about the general inflationary picture oil coming a little bit down today. It’s still eye-popping at more than 82 bucks a barrel gas, now increasingly costing over $4 in some locations over $5 a gallon. How long do you see all of this dragging on

MARTIN: A long time? Because demand is there now, see, that’s the problem. Not only have we had obviously reasons that we mentioned just a second ago about price pressures to the upside, but now we’ve got demand really coming in with the economy fully reopening. So I see Neal some real issues at the pump and some real issues with respect to prices of oil prices at the barrel because you have demand coming back where that’s going to drive up price, even if we do to tap the SPR or actually increase production, which is probably unlikely anyway.

CAVUTO: You know, Scott, I notice in the latest quarter, you know, consumer spending was running at about a one point six percent clip that is down from more than 12 percent in the prior quarter. So it’s very clear that Americans are slowing down a little bit. When does slowing down become nothing? I mean, with no change reversing,

MARTIN: It could be soon. I mean, you see these price pressures with the energy side of things, you see some of the other pressures that we’re seeing at the grocery store. Obviously, consumers are feeling the pinch here, so it definitely could turn into something maybe a little bit more of some sort of malaise, especially with now the Federal Reserve question marks going on with Jay Powell and whether he gets renominated or not, Neil. So therefore, you’ve got some pressures on the consumer now that weren’t there, as you mentioned just even six months ago.

CAVUTO: All right, Scott, be talking to you in a bit. Thank you, my friend.


CIO Scott Martin Interviewed on Fox News 11.10.21

Kingsview CIO Scott Martin discusses buying opportunities, volatile stocks and the electric vehicle space.

Program: Cavuto Coast to Coast
Date: 11/10/2021
Station: Fox Business News
Time: 12:00PM

NEIL CAVUTO: All right, at such a loss for the Dow here, we’re still waiting, by the way, on really in the electric vehicle maker backed by the likes of Amazon and Ford. This one has been a fascinating story to follow because it was originally going to be priced in the 72 to 74 bucks a share level that was essentially doubled from the early talk. And then now they’re saying, you know what? It does debut maybe a hundred fourteen or fifteen dollars a share. So this thing’s like a rocket here, although we be watching it closely. But again, still waiting for that debut, a good opportunity to talk to Scott Martin back with us right now. Kingsview Asset Management. You know, it’s got the right IPO at the right time can tell a lot about what clicks with investors too early to say, whether that you know this electric vehicle maker will be right. But it does seem to get the advanced positive buzz. How do guys like you decide where attention is warranted and where maybe standing back is just as well?

SCOTT MARTIN: Yeah, I think get a look at the space first and foremost, Neil. As far as where some of these companies are located, you mentioned that this happens to be in the electric vehicle space, which is very hot. Obviously, the price is being chased up as we speak. So that’s an area where I think you’ve got to start with respect to where the company is operating. And then secondarily, look at the pricing. As you mentioned, it’s already called up another 30 points above the initial IPO price. Usually don’t chase things like that, but companies that actually come in say around the appropriate IPO valuation, those are companies that we like to buy into because usually the chasing starts happening after they start publicly trading.

CAVUTO: You know, a lot of people get into ideas of all sorts here, and that does seem like you just stated to be a fairly, you know, reliable rule of thumb that the faster you come out the gate, sometimes the more problematic, the longer term. Conversely, you know, sometimes when you stumble, coming out of the former Facebook comes to mind. It took, you know, almost a year before things stabilize and then it was off to the races. All these controversies notwithstanding. Do you play these at all or do you just hold off until the dust settles?

MARTIN: We do play them. You mentioned Facebook. What a great buying opportunity that was felt by about 50 percent. And then those who were lucky enough to scoop it in the high 20s did very well. Bumble is a recent one that did that as well, Neil. And then, of course, Airbnb as well, and DoorDash too. So we do play in that space. But as you mentioned, I mean, some of these things come hot right out of the gate, and they’re just not good stocks to chase. But as long as they come back with some relative valuation, as you mentioned with the latest IPO that we talked about just a second ago, I mean, they’re losing money hand over fist every quarter. So we don’t chase ones that aren’t as fundamentally strong. But there are companies out there coming public that are attractive.

CAVUTO: You know, that’s to Tesla for a second electric vehicle players. But you know, the stock lost about $2 billion in market value over the last couple of days. And now it’s up about it looks like at about 40 bucks or so, it’s around one thousand sixty four a share. But what’s interesting is it all started with Elon Musk, you know, putting out the Twitter this poll to say, I think I should sell some stock up to 21 billion. He lost more than 50 billion on paper in the interim. But it does remind you how dependent that that stock is, you know, joined at the hip to its owner.

MARTIN: Yeah, I mean, he is a rock star, and so what he does affects all aspects of the company and certainly the stock price. It’s kind of funny how he did take the the poll or the opinion of Twitter. It end up costing him more than he actually sold. But the reality is that stock’s volatile and it’s at some near all time highs, and therefore it’s going to move around quite a bit. But that space, the electric vehicle space is so hot that that company is going to do very well, especially with a lot of the cars that they have coming down the line.

CAVUTO: Thank you, my friend. Scott Martin. Following all of these developments.


CIO Scott Martin Interviewed on Fox Business News 10.7.21

Kingsview CIO Scott Martin discusses food inflation, employment and whether the job market may be normalizing.

Program: Your World with Cavuto
Date: 10/7/2021
Station: Fox Business News
Time: 4:00PM

NEIL CAVUTO: Forget about not even born, I mean, you don’t he doesn’t even remember a bear market, that’s next guy. Scott Martin Fox Business Contributor But again, an uncanny read of these markets for a young whippersnapper, Scott. You know, they’re mentioning the inflation word again and they’re saying, you know, be prepared for it sticking around a while. Are you in that camp?

SCOTT MARTIN: In parts of that camp, Neil, I think the gasoline concerns are definitely there and going to stay there, the food and some of the materials, I’m not so sure now. It’s funny the things that Lydia was talking about, Neil. It’s kind of things that we should probably be eating less of anyway. So maybe the inflation is doing a favor for us. I mean, personal story. I may or may not have brought some Golden Oreos with me to the studio today. You never know. The point is, you go to the store now, man used to be able to buy those Golden Oreos in the pack, and they had about sixty in them, for about you know, five bucks or something. Now you’re down to about 40 for a higher price. We probably don’t need to be eating 60 of those things anyway in a setting. So for my sake, some of the food inflation might actually maybe force us to make some healthier choices. Oh my gosh.

CAVUTO: Well, I don’t don’t go nuts here, but I don’t relate to this because, you know, I haven’t noticed the same run-up in prices in arugula, but you could be right. Yeah. But you know, I’m wondering because when inflation takes hold, it has a devil of the time sort of easing back. And we saw that from the 70s experience. Not that I think that that is necessarily the case now. But what do you look for that would at least get you thinking maybe this is more of a problem than I thought?

MARTIN: I think the secret Neil lies in the job market. I think it basically pans itself out in wage inflation because our good buddy, Milton Friedman, who yes, I’ve read about didn’t actually get a chance to meet him, which was the old talk of saying, you know, inflation is basically a monetary phenomenon. It’s too much money chasing too few of goods. We definitely have to feel good. I mean that that’s evident everywhere around the country today. But the wage thing that too much money chasing those goods may or may not be really the case here. So I think until that pans out to where we have both sides of those things fighting it out, I think that’s why I still think Jay Powell has it right. I think a lot of this stuff is transitory. It’s probably lasting a little bit longer than a lot of folks predicted. But we’re going to start to see we’ve got a jobs number tomorrow. I’m going to start to see those wage numbers, I believe calmed down as the job market maybe normalizes here.

CAVUTO: All right. We’ll see what happens. Scott Martin, great catching up with you and great relying on the expertise these last few years here, even though you weren’t alive when we started. But it’s good. Good that you’re alive right now.


CIO Scott Martin Interviewed on Fox Business News 9.28.21

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

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

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

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

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

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

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


CIO Scott Martin Interviewed on Fox Business News 9.21.21

Kingsview CIO Scott Martin discusses recent market pullbacks, how 2021 compares to 2008, and how China’s actions affect the market.

Program: Cavuto Coast to Coast
Date: 9/21/2021
Station: Fox Business News
Time: 12:00AM

NEIL CAVUTO: Let’s go to Scott Martin, a guy who had his tender years when it comes to looking at markets because he knows enough, usually September young as he is to know it’s a problematic month so far, it continues that theme. What do you make of what’s going on?

SCOTT MARTIN: Yes, as young as I am, Neil, I do know my months of the year, so that’s very helpful when we look at old Mr or Mrs. You know, gender neutral stock market here these days. That’s the popular thing to say, I guess, is that there is seasonality involved in markets. Know what’s funny about statistics. I being one a fan of statistics, Neil and how we run our portfolios at Kingsview and in some of our ETFs, you can manipulate statistics. Some people say you can beat them to death. You can beat them to tell you what you want them to do. But the reality is you can change them around to say, Hey, if you take out a month like the terrible attacks of September 11th, if you take out the crash of October eighty seven, if you take out some of the things that are going on with the Gulf War volatility in the markets and 94 the months, don’t look that bad. But what I do like about looking at things maybe more in a concurrent basis today is that there was a little bit of maybe too much optimism there going into the fall here that basically, I guess at least tribulation itself into. Now what we’re seeing in the markets as far as some pullback, some reconciliation, some recognizing that markets didn’t need to pullback, some to get to a level to where buyers were going to come back in.

CAVUTO: Do you worry about what’s happening in China and that it could spread here? I know it’s unique to China. Three hundred billion dollars, you know, vulnerable assets right now. Let’s say it defaults on this payment due Thursday that it could have reverberations here. I tried mightily and you probably have as well to look at any U.S. exposure here and outside of a few, you know, you know, Western bond funds like those from BlackRock and PIMCO, Pacific Investment Management and maybe Ashmore Group. I don’t see that wide exposure, but maybe to the markets if this thing went belly up. It

doesn’t matter. It would have it cascading or a domino effect. What do you what do you think?

MARTIN: It would, and we’re kind of lucky in the fact that China has shut out a lot of our banks from doing so much business over there, especially of late, so the exposure isn’t as bad as it probably could be. Another thing that’s funny about the exposure with China and kind of that systematic contagion effect, Neil, that we saw around the financial crisis is folks and mainly on another network, thank goodness, have been saying that this is like 2008 again, not even close. It’s a lot more isolated. The Chinese government has a history of kind of kind of manipulating and taking care of these companies within their country in weird ways with a lot of force and control. So I do think they’re going to come in and do something to kind of save the bacon here, so to speak, even though I’m trying to cut out bacon off my diet because the reality is that the damage that something like this, it’s hard to do the reality, the damage of this that would expand into the markets. Just as far as general unease, it’s probably not worth the lesson. Let’s say that the People’s Republic of China gets even what you want to call them, want to give the rest of the market or their own market. I don’t think, although President Xi, to your point about where China is, my goodness, man. I mean, these days, whenever he’s speaking, whenever they’re putting out what they’re doing with some of the technology companies over there and certainly some of the things in Hong Kong, it’s very worrisome. What they’re doing on may be more of a grand basis of how they’re handling a lot of the business matters and people in their country.

CAVUTO: Yeah, and I think telling is the fact that China doesn’t care if it hurts them and if it boomerangs on them, that’s pretty bold if you think about it because they’re clearly taking it on the chin as a result of all of this. They don’t give a damn. And that worries me too.

MARTIN: And it worries the markets, certainly. But I think overall, the reality is that these buying opportunities that do occur like days like yesterday, when it looks like the market was going to be down over a thousand points in the Dow today we bounce so far and then everybody’s like, Well, just sell this. Take these opportunities to layer in the positions that you like because longer term, this too shall pass just like the financial crisis did and just like the COVID freak out from 2020 did.

CAVUTO: Yeah, I think Gilda Radner, the late great comedian out of it, it’s always something. Because you’re too young.

MARTIN: Right? I’m a big Gene Wilder fan, something there with the amount.

CAVUTO: Yes, exactly. OK, thank you very much.