CIO Scott Martin Interviewed on Fox News 3.11.22

Kingsview CIO Scott Martin discusses consumer sentiment, keeping the market calm, and remaining nimble in case the market drops further.

Program: Making Money with Charles Payne
Date: 3/11/2022
Station: Fox Business News
Time: 2:00PM

CHARLES PAYNE: I’ve got two of the best with me in studio, I in the studio. Scott Martin, Paul Shatz Let’s start with this Russian invasion, guys, because it’s really it seems to me it’s going to be tough for this market to get any traction until this. There’s some kind of closure there, Paul.

PAUL SCHATZ: I don’t think any and first of all, it’s great to be back in person.

PAYNE: Are you?

SCHATZ: We’ll wait. I’m real like

SCOTT MARTIN: This is actually happening. No pinch me.

SCHATZ: I’m not sure. I think you have to have resolution on Russian Ukraine. Look, in 1990, when Iraq invaded Kuwait, stocks bottomed in October of 1990. Both didn’t fly until January of ninety one in 03. Yet a similar thing. I think people are taking their eye off the real ball. That’s the Fed we have to get by March 15 16. And regardless, except obviously a tactical nuke, but regardless of what’s going on in Ukraine and with Russia, I think once you get by the Fed, I think markets will feel a little bit of one. Even though we don’t think there’s any uncertainty, I still think there is some in the markets. Ultimately, the resolution should be the upside and swift in Q2.

PAYNE: What do you think?

MARTIN: I think Paul’s right. I think you got it. Well, it’s been what kind of risk you want to take, right? Because Paul, as you mentioned, there are times in history when the markets have rallied ahead of the all clear. And that’s that’s the opportunity, right, Charles. But there’s also investors like we have that don’t want to take that kind of risk or shot. But I agree that it’s just like the consumer sentiment number you mentioned. The worst that gets, the more bullish I’m getting because that means folks are selling their getting out. That’s putting in a bottom, in my opinion, and that’s when you get a jump in if you’ve got a long term.

PAYNE: Let me ask you about a potential for a recession, because that number today, every time it’s hit that number, we have had a recession. Yesterday, Janet Yellen said she’s confident the Fed is going to engineer a soft landing. How are you? What are you doing right now, Scott, in your portfolio vis-a-vis that? First of all, do you believe there’ll be a soft landing?

MARTIN: I hope. I mean, of course it doesn’t make.

PAYNE: Does it make a big difference in what you own in this market? Or whether you think that we can skirt a recession or if we go into one? It doesn’t make sense.

MARTIN: Not so much, Charles, because we will come out of that recession eventually and to handicap it, white saying, Hey, the recession starts in June, it starts in September, it ends in December. Who really knows? I wish I had the crystal ball. I smashed it like five years ago and didn’t buy another one. But the point is well said on your behalf, which is Janet Yellen’s to going to feed this market, the philosophy that’s going to make the market the most calm. I don’t know if she’s entirely realistic, but it does not change what we do, Charles, because we’re managing around the edges. You know, I’m a gold lover. We’ve been adding more gold here. We’ve been adding some energy, been trying to hedge out some of that equity risk and growth.

PAYNE: Also, some of the tools for public consumption, right? The administration trying to put the ball the inflation anywhere it can go. Oil companies pluton. You know, now it’s now it’s a fall or the responsibility of the Fed,

SCHATZ: As Alan Greenspan, who was the worst Fed chair ever, would have said they’re obfuscating the truth. Here’s a bottom line first, regarding the recession. If you looked at that chart closely right now, consumer sentiment is worse than it was in March of twenty twenty. It’s worse right now, right? The difference now is if you look at that chart, you’ll see when consumer sentiment plunged that much, you were already halfway into the recession.

MARTIN: Bingo.

SCHATZ: And to Scotty’s point, I don’t know whether we’ll actually get two negative quarters of GDP growth, but I don’t think we’re going to look back and say wow. Plus five percent GDP evaporated in the span of months. It just doesn’t happen.

PAYNE: So I was reading something yesterday. I thought it was amazing because it said only twice in history has the S&P been down this much. And there is still this many names above the 50 day moving average, right? Twenty three percent of the names above the 50 day moving average. And I’m thinking about this because every show I’ve done for like six months has talked about how many names are below the 50 or 200 day moving average. They’re saying there’s not enough capitulation that we need to go ahead. We need even more suffering. That’s like one of those Marvel comics guys. You know, like, I want to destroy the Earth. I mean, do we need more destruction in this market, Scott? That’s how you

MARTIN: That’s how you rebuild man. You destroy everything and you get more building back. I mean, but you only you would find a stat like that.

PAYNE: It blew my mind, like there’s not enough destruction.

MARTIN: Here’s the deal, though that number is significant if and only if we actually do have a recession coming or we do have a fed mistake because that could be something that just shows that this is maybe more of a nut, I guess not false bottom, a higher bottom than we think there may be where that could actually be a constructive number to say, Hey, look, we didn’t have a crazy washout. Things maybe weren’t as bad as we thought earnings were going to be better going forward. Therefore, you can construct let me

PAYNE: let me switch gears. I you want to get on this, but I want to. I want to also ask you guys about some different ideas before I let you go. And and so…

SCHATZ: We have to go?

MARTIN: We’re staying the hour.

PAYNE: But there are there are parting, parting prices. We got napkins, we got makeup removal

MARTIN: pens.

PAYNE: No more pens. So Deutsche Bank initiated coverage on a whole lot of tech names today and what they all had in common. They’re all down big time, they’re all getting hammered. TrimTabs says that there’s significant significant buying in tech right now, and the ratio to buying, you know, to long versus short is that is at the highest one. It’s been at 75 weeks. Paul, do you start to nibble here sometimes? Some of these tech names

SCHATZ: Hand on table bashing your fist on the table. You absolutely do. Look, we know we love to make fun of Wall Street for downgrading all these stocks after they’ve been down 80 percent. Give Deutsche Bank some props because they’re issued by signals after stocks were finally down. Insider buying in tech only is screaming. It’s not one company or two companies. It’s across the industry. These guys, men and women, they may be early, but they’re rarely ever wrong over the intermediate long term. The short answer is yes. Investors who can be nimble of should absolutely look for some of these beaten down names.

PAYNE: I mean, it’s hard, Scott, to imagine that this world does amazing work that we’ve been talking about. You know, that’s going to that’s going to materialize in front of our very eyes. All of a sudden, the opportunities that have evaporated, these stocks have gotten cheaper and maybe rightfully so right.

MARTIN: And things like evaporated because Putin went crazy and rode in on the high horse and thought he could take over Ukraine. I think it’s still riding horses, or that oil got to one 30 overnight. One night like that suddenly evaporated. To your point, all this enthusiasm, I don’t agree with it. I think Paul’s right nimble is a key word there, because I think nimble also means keep some dry powder for when the market screws up again and overreact to something else that happens. And you’ve got money to drop in if the market drops further, but they’re good long term names. He’s right.

PAYNE: All right, Paul Scott. Great seeing you guys to make sure you make sure you grab your makeup removal and way out.

MARTIN: I’m getting a tie.

PAYNE: All right now for greater insight.

6:23

CIO Scott Martin Interviewed on Fox News 3.10.22

Kingsview CIO Scott Martin discusses inflation, a slowing economy, oil prices, and the increases in commodities.

Program: Kennedy
Date: 3/10/2022
Station: Fox Business News
Time: 7:00PM

DAVID ASMAN: So conflict with Russia. Gas lines down the block and grocery prices soaring beyond control, if you’re feeling like you’re in a time warp, you’re not alone. We’ve been here before. An annual inflation jumped to seven point nine percent in February. This is the highest rate since 1982. Today, former Trump economic adviser Kevin Hassett warned of the dire state of the U.S. economy. Watch

KEVIN HASSETT: What we’re doing is we’re looking at inflation that’s out of control at a time when the economy is sort of headed towards a recession and the Fed hasn’t even started tightening yet, and we’ve got this runaway inflation and a weakening economy.

ASMAN: So here with me now in the studio is Fox News contributor and Kingsview Wealth Management, Chief Investment Officer. He’s from Chicago, but he flew to New York just for the show. Thank you for that.

SCOTT MARTIN: My own accord and not even having a little bit of skin here today.

ASMAN: Nice to see you in person, in person. All right. Let’s pick up off of what Hassett was saying. The problem is to deal with this inflation. The Fed is going to have to tight raise interest rates, but it’s reluctant, more reluctant now to do it than it was before the Russian invasion. And if it’s tightening at all during a slowdown, we got recession, don’t we?

MARTIN: They had their chance, David, when the economy was actually growing kind of on its own. And you’re right now it’s slowing on its own. I think we’re going to see one or two rate hikes and that’s going to be it. And by then, to your point, I mean, mix in the oil price issue and we’re not even at summer driving season yet. Just getting into spring break here, as I know, as my kids remind me every day that that’s like a month away. So imagine that with the oil prices mixed in to the Fed hiking interest rates. Recessions on the doorstep.

ASMAN: If you’re not careful, the bottom line the only way to stop the inflation and kind of inflation that we’re clearly heading towards. Kevin Hassett, by the way, thinks it’s already double digit because you look at the wholesale prices, that’s 10 percent down by now and that’s going to be heading towards the retail sector soon. And that means that consumers are going to be paying the price. But you have to do what Volcker did in the 1980s, the last time we had inflation like this that has put interest rates above inflation. We have it the other way around. We’ve got a long way to go. We’d have to have a 10 year rate of about 10 or 12 percent in order to start kicking down inflation. And it’s now about under two

MARTIN: Yeah it’s under two, David. And it doesn’t seem like it wants to rise that much, either. I mean, it got back up there like 220 or so and then fell again. It’s concerning, and it’s concerning how far behind the curve the Fed is, but also how, you know, inflation has kind of a bad rap, but inflation isn’t bad if you’re growing as an economy. And I think the Biden administration and local officials screwed up by saying, Hey, we know what’s best for the economy. We know we know what to do coming out of COVID, and they got in the way. And what happened was David is all they did was just the inflation picture. All they did was cut American jobs, or at least the people that we’re working. We have jobs. People just don’t want to take them because they’re getting paid to stay home. And so therefore the economy has been messed with by the politics that were involved. And so therefore this economy is not even breathing on its own. So it can’t even take care of the inflation that it would normally take care of.

ASMAN: And even though inflation was growing great guns before the Russian invasion was even on the radar screen. We now have President Biden blaming Russia for all of this inflation that we’ve had. Steve Rattner, by the way, who was an Obama economic adviser, Steve Rattner said today, that’s not true. These are February numbers and only include small Russia. In fact, this is Biden’s inflation, and he needs to own it. This is an Obama economic adviser, so nobody’s going to believe Biden in blaming Russia, are they?

MARTIN: No, I hope not. But they’re finding excuses as they have been this whole administration.

ASMAN: It was a supply chain problem. Now it’s Russia, who knows?

MARTIN: Not to mention the war on oil that he’s set to stage the day he got into office. So the other problem, too, is that really still bothers me is that little anecdote he told the American people about. When I think it was Joe Biden’s cousin or friend, Marianne came over and told him how expensive a pound of ground beef was. Well, that was over five dollars. We need Marianne to go over there again and tell him how expensive everything else is because it seems like he doesn’t even know.

ASMAN: By the way, you’re in Chicago, you know a lot about commodities. They’re going sky high as well, right?

MARTIN: They are. Commodities were limited up a couple of days ago. They’re going up on days when you’d expect them actually to drop and pull back so they keep rising. Chicago Another place that just got destroyed by political environment as far as just interference cut down the economy and it really messed up with

ASMAN: Fertilizer disappearing on world markets because they can’t get the food. Yeah, well, they can’t get the natural gas that they need to make. The fertilizer trade happens to food prices. Unbelievable. Scott Martin, good to see you. Safe travels.

4:36

CIO Scott Martin Interviewed on Fox News 3.9.22

Kingsview CIO Scott Martin discusses the “fast market”, what’s been happening in oil pricing, and the volatility in commodities.

Program:  Cavuto Coast to Coast
Date:  3/9/2022
Station:  Fox Business News
Time:  12:00PM

NEIL CAVUTO: Scott Martin, now Kingsview Asset Management. You know, Scott, I understand all those numbers very outline, but I always wonder about the support that Vladimir Putin has back home and he’s they’re not told much. I get that, but they can see what’s going on. They can see these McDonald’s that are soon to be all close Coca-Cola products that are soon to be all gone, Starbucks, that you know they’re not going to be able to get. Of course, if you want to spend, you know, fifty dollars for a cup of coffee, I exaggerate to make the point. Isn’t that the kind of stuff that would have a far greater impact on the average Russian wondering what the Hell’s going on than whatever banks are doing or whatever big Fortune 500 companies, you know, no longer trading on open central banks with them are doing.

SCOTT MARTIN: It’s more common. It hit its home. It hits Main Street right off the bat. Neil, I feel for these people not only because of what’s going on politically there, but because I mean, my goodness, if I got my Big Mac or chicken nuggets or my frou frou cappuccino taken away from me, I’d be upset. But you made something very important. As far as a point. We’re not sure what they’re being told, and I have a guess as to what they’re being told, and it’s probably not the truth. And so when you see these companies go away and it is a political statement on on their part, it’s the right move. As Gerry pointed out, it’s a few percent of revenue globally, so it’s not really that impactful. So it speaks maybe more volumes than it does actually in revenue numbers. But Neil, the people in Russia could be told a completely different story than really what’s going on. And so is they see restaurants move out. You got to think that maybe the Russian government, Russian officials find a way to turn this even against the Western world because they’re taking things away from the Russian people. At times, they much need them.

CAVUTO: Yeah, well, he’s blamed us naturalists interest for all of this, so maybe that’s the story they’re buying. You know, let me switch to the markets today. This Big Oil drop, of course, oil’s run up prohibitively double the price this year. I’m just wondering what you make of this reaction. There are extreme swings at the yesterday. For a while, we have better than 600 points of, especially when the president seemed to pivot on the idea of a total ban on Russian oil. Some might have interpreted that as a sign he could pivot on domestic production. But what had been a 600 point gain turned into a 170 plus point loss. What do you tell your clients with markets that have these huge swings?

MARTIN: I’m going to take your words earlier. It’s a fast market. And you mentioned crude today. I mean, Neil crude. Before the market opened yesterday, it was up over 130. So that’s a 24 hour move and about what? About 30 hours? That’s a move that’s big enough for a year, let alone a day and a half. So clients are nervous because of that because there’s not a lot of stability, there’s not a lot of forecasting that really can be relied on here. But what we tell our clients is that, look, we’ve got you in portfolios, we have you in positions that are geared towards that long term goal or even the short term goal, whatever it may be, and you reduce risk along the way, depending on how close you get to those goals. But we’re actually positioned to take advantage of some of this volatility in the commodities market. But to your point, it’s bleeding into other markets. I mean, this is totally bled into the bond market. It’s bled into equities. And so we just have to be prepared for good days and bad days. But just like all these other times that you and I have talked about on the shows now for gosh, to date us here decades, my friend, things do come back. The Sun does come up again, and it’s usually darkest before dawn, and I think this is no different.

CAVUTO: We shall see. Always good, Scott, thank you very much, Scott Martin.

7:47

CIO Scott Martin Interviewed on Fox News 3.3.22

Kingsview CIO Scott Martin discusses oil prices, what gas prices might look like this summer and the possibility of fossil fuel creation in the US.

Program: Mornings with Maria
Date: 3/3/2022
Station: Fox Business News
Time: 6:00AM

MARIA BARTIROMO: And it is time for the word on Wall Street. Top investors watching your money join me right now. Strategic Wealth Partners President and CEO Mark Tepper. UBS Financial Services Private Wealth Advisor Ali Macartney and Kingsview Wealth Management Chief Investment Officer Scott Martin. Great to see everybody this morning. Thank you so much for being here, Scott and kicking things off with you with this massive move in the price of oil. Crude traded as high as one hundred and sixteen dollars a barrel. That was the highest since 2008. We know that OPEC had their meeting yesterday saying that they will maintain an increase in output by 400000 barrels a day this month. That was lower than a lot was a lot of people were expecting. And yesterday I spoke with the power the future executive director Daniel Turner, about what he expects from the oil market. Listen to this.

DANIEL TURNER: One hundred and fifty easily. And if we do ever put sanctions on Russian oil, which is doubtful, but if they actually did, I think $200 a barrel oil is not impossible, and that will be devastating to our economy, to families.

BARTIROMO: Scottie, your reaction?

SCOTT MARTIN: I’m freaking out. You’ve been talking about it all morning, Maria, with some of the guests about just unlimited was a number that Donald Trump threw on there. And as you talked about with David earlier in the hour and five o’clock, the numbers are at least probably one 50 plus. He’s just heard from Daniel Turner there. So it’s scary. And it reminds me of a set up kind of similar to 2008, when oil prices spiked and then we had the economy get trashed. Now that was also on the back of the financial crisis, of course. But don’t forget that summer and how tough it was and how we’re coming up to a summer here when we’re coming out of COVID or we’re lifting the veil. The economy supposedly so great. Yet we’re going to be hitting summer driving season with with prices at seven or eight bucks a gallon. So the issue that I have more is the fact that you’ve been talking about it. Deggans said it earlier today, too. There’s just no plan as far as what this administration is delivering. The outlook is poor when it comes to any kind of support for fossil fuel creation here in the United States or utilization. And therefore, unless they come up with something different, this is definitely got a ticket to one 50 plus and possibly an economic recession not soon thereafter or very soon after.

BARTIROMO: Well, you know, you look at this week, Ali Oil this week alone is up twenty four percent. That’s just the week and the Federal Reserve obviously watching closely. Jay Powell yesterday on the Hill. And by the way, he’ll be back on the hill today. He will say much of the shame that he said yesterday, and he proposed a quarter percentage point rate increase at the central bank’s next meeting that happens in two weeks. Ali, as you know, this hike is lower than what much of the market was expecting, right? The market was pretty much pricing in a half a point hike in that meeting in two weeks, and it comes as inflation is at a 40 year high. Your reaction?

ALLI MCCARTNEY: We have had a ton of intra day volatility, but in the fixed income market and the equity market and coming into late last week, as you said, there was an overwhelming likelihood of a 50 basis point increase in March. At least that’s what the markets are forecasting and that was taking down all of equity markets, but especially growth stocks for all of the reasons that we we discussed every morning. So yesterday’s commentary was very meaningful in terms of being whether you use the word dovish, conciliatory and basically what he came in and did as you referred to it, the Powell pivot. I like that. Was he sort of xed out the noise that you’ve heard from other Fed governors that would allow people to get concerned about an aggressive interest rate policy that would crowd out growth, especially with this highly uncertain environment? And that’s what the market was looking for. So that’s why you had yet another one of these sort of about-face midday where you went from markets being, you know, really in the red to afterwards in the green. I think all the market wants to hear as it has been true all throughout the COVID period is this continued, we understand markets are uncertain. We understand situations are uncertain. We are being nimble, we don’t have a, you know, a preset plan. We are going to adjust. We have an eye towards inflation. We understand what’s going on in the market and the threats there, and we are going to address those as opposed to making, quote unquote another policy mistake.

BARTIROMO: Ali, is there an investment play here? I mean, I know the negative implications of one hundred and sixteen dollar oil, but do you want your own energy stocks here? It’s been one of the best performing sectors in the last year.

MCCARTNEY: Yeah, so look over the last couple of days, especially on on to on Tuesday. Cyclicals, so largely energy, financials, even industrials. So all the sort of reopening value players went down. So we are at lows that we haven’t seen in a very long time. We actually did take our our S&P numbers down just given what’s happening in the market and the massive uncertainty and the intricacies and interconnectedness of it. But we still see an S&P at forty eight hundred by the end of the year. And you know, individual investors have the benefit of not having to trade everyday, being able to hold long term. So I think that’s the place to go. I think industrials, financials, energy, we should be picking up here for sure.

BARTIROMO: Yeah. And Mark Ali’s taking her expectations down for the broader economy because of the impact on oil. Is it going to have an impact on jobs? We’re getting the weekly jobless claims out in an hour and a half. We’ll get the jobless claims out today and tomorrow, the jobs report. Economists are expecting 400000 jobs added to the economy in February. The unemployment rate ticking lower to three point nine percent. Does the oil shock hit the February jobs report mark?

MARK TEPPER: I don’t think so, not yet. And look, if we look at adding four hundred thousand jobs in February after like four hundred and seventy thousand in January, if the Fed really has a dual mandate, that’s the green light to follow through on their commitment to hiking rates so that they can fight off inflation. And look, my overall take on the jobs market right now is that it’s actually too strong. I think it’s overheated, and I think that eventually begins to hurt margins. And right now, if you think about it, the employee has pricing power over the employer. It’s a it’s a zero sum game right now where companies, they’re poaching talent from their competitors, they’re paying substantial premiums of like 20 percent, 40 percent. And those pay increases are not one time bonuses, they’re permanent. And the issue is you’re not getting talent that’s 20 percent or 40 percent more productive. You’re just paying more for the same productivity. And that, to me, just seems to be unsustainable. It seems like big companies are eating small businesses alive. And let’s remember small and medium businesses employ 50 percent of the private workforce. So how is a small manufacturing company supposed to hire someone at 12, 13, 14 bucks an hour when that same person can go to Amazon for 18 bucks? Or Target? Just recently committed to getting to twenty four bucks an hour over the course of the next couple of years. So the big get bigger, the small go extinct. And I don’t think that’s a recipe for success for our for our country, but

BARTIROMO: it’s a great analysis really pointing in and zeroing in on that and that jobs turnover. Ali, Makani, Scotty Martin, great to see you both. Thanks very much for the wonderful work on Wall Street. Mark Tepper, you’re sticking with this all morning and we’re grateful for that.

7:47

CIO Scott Martin Interviewed on Fox Business News 6.23.21 Pt. 1

Program: Cavuto Coast to Coast
Date: 6/23/2021
Station: Fox Business News
Time: 12:00PM

NEIL CAVUTO: You know, we focus on energy prices, what’s happening, because the last two big inflationary spirals we had dating back to the early 1970s and again in the late 1970s, they started with oil. Now, those of a certain age might recall those long gas lines in 1973, with the first big OPEC oil embargo that was under Richard Nixon, started with oil, extended to a whole lot of other stuff after that. Then a few years later, when OPEC was at it again. But we were hit much harder that second time because that quickly went from the pump to pumping up prices of almost everything else and then slowing things down as interest rates were spiked. And all of a sudden we were dealing with a slowing economy with higher prices, what they famously called stagflation. Could that be happening right now? Most experts say no. But again, the experts were saying that in both of those crises. Let’s go to Connell McShane. He’s following all of this, as is Scott Martin, at Kingsview Asset Management. You know, it’s interesting, Scott, when you look at the history of inflation and some of the more serious spikes we had, it did start with oil. It extended to other areas. Now, there were other foreign developments to keep an eye on. To be fair and to be sure. But again, oil at the center of it. What do you think?

SCOTT MARTIN: Yeah, and a lot of foreign reliance back in those days, Neal, which I do remember because I read about them very extensively, didn’t have to live through them, thank goodness, at least for the most part. But, yeah, I know just how to throw that out there, just to remind you. But a lot of the foreign reliance back in those ages, let’s say, Neil, we’re relying on other foreign countries to provide that oil and that supply to us nowadays, at least depending on where the administration stands or let’s say what administration is in power there is less reliant on, say that that foreign relationship. The other issue, though, if you just look at production in general of things that are out there that we use every day, oil is such a big part of so many things that go into what we use and what we have on our daily lives. So when you have a spike in oil prices, like we’ve really seen frankly, over the last several months, it does still bring up that fright of some of those days in the 70s when oil prices went up markedly and that affected final prices of goods at the consumer level.

CAVUTO: You know, you think about it too Connell, we have much faster markets, you know, heavier markets that can change on a dime. A lot of times that. So the reaction can be swift and it can it can also be, you know, headaches. And I’m just wondering now, localized as this is on the energy front, some of the other pressures, for example, on food related items have eased a tad, not a lot, but at least a tad when you’re out on the hustings and you’re going around the country. How big a factor those higher gas and energy prices?

CONNELL MCSHANE: I think for now they are a big factor and one of the many areas that we see rising prices, I think that same book that Scott read about the 1970s, though, would say that when you look back on that time, you also realized that there were mistakes made on the policy front and we’d have to rely on the Federal Reserve under Jay Powell to make the same sort of mistakes that the I guess, the Arthur Burns Federal Reserve made back then. And Powell, as he’s been speaking in recent days, has been adamant that they’re they’re going to avoid having history repeat itself. I think the one thing right now and some of those numbers that we just flashed up a moment ago speak to this argument that I think is the reason why the so-called experts don’t see this as a huge problem yet. You you can really make a logical argument that this is a temporary spike we’re seeing in prices. I mean, think about you know, we’ve been traveling a lot for reporting on a number of stories. It’s tough to get a car right now, car rental. So there’s a shortage there. There’s a shortage, certainly, of workers that maybe it gets resolved later in the year. The shortage of computer chips that we reported on over and over. So some of the shortages that we’re seeing will likely resolve themselves over time. So the idea of the higher prices in the energy market spreading all over and leading to a long term, higher prices across the board does seem to be less likely. And I think that’s what Jay Powell is talking about. No, please write.

CAVUTO: You know, we’ve been also following Bitcoin, that’s a proxy if things get a little tenuous or a little dicey that people have fled to Bitcoin as they fled the gold. Mark Cuban comes along and says, Scott, that as things stand now, Bitcoin is better than gold. Now, he’s a pretty successful investor in his own right, so he’s not giving up on it, even with the whipsawing. What do you make of that?

MARTIN: If you’ve got Mylanta handy, yeah, bitcoin is OK. I mean, Bitcoin is crazy. I mean, look at some of the movements overnight, Neil and Bitcoin in the last few days, it’s been wild. We like gold better just because it’s less volatile. I believe it’s still a little bit more reliable from a price standpoint. But look, if you’re up for some of the volatility that that stands to to reckon in Bitcoin, great, you just got to buy on some of these dips. I mean, you really have to buy when it’s darkest before dawn in Bitcoin. But it is, to your point, a declaration as kind of gold is against government policy. In this case, all the printing that’s going on, all the spending that’s going on in D.C. tax policy coming down the road here, asset classes like Bitcoin. like Ethereum like gold, in our opinion, which we own. Those are asset classes to hold in your portfolio as a subsequent hedge to further erroneous government policy. That’s sure to come down the road here.

CAVUTO: You know, this battle, you know, back and forth with the Bitcoin bulls versus the bears, obviously a great deal is predicated on on having it available, having it readily available. And I guess, you know Connell, when China crack down on mining and even crack down on countries that that do mine it and explore for it, I was just thinking here, well, you might not be able to get your hands on anyway, but I would always think that that would help the underlying Bitcoin arena, all the crypto currencies, and that it would be a limited amount of supply that for which is a considerable amount of demand. I haven’t seen that part work out, though.

MCSHANE: It might, though, over the longer term, right? I mean, because the laws of supply and demand shouldn’t change, but it has been interesting to see what’s been going on in China. And that’s certainly, I think, part of the battle we’ll see back and forth, maybe not as reported as it should be kind of geopolitically between the United States and China over these these crypto miners. And that will probably continue. I mean, broadly speaking and Scott’s the the investment guru among us, I don’t even attempt to play one on TV. But having the idea of having at least part of your portfolio in some alternative investments doesn’t seem so crazy, depending on what your risk appetite is. And, you know, you can make a decent return and in Bitcoin is not going away. So the idea of having some portion of your portfolio there as opposed to all of it or taking huge chances still doesn’t seem to be too crazy to me, especially if I end up being right on that supply demand front over the long term.

CAVUTO: I like to put all my kids education money on the line with Bitcoin just for the hell of it. All right, this works out, kids. It’s going to be great if it doesn’t. Well, your mom and I are going to have a party. But guys, don’t go away too far. I want to touch on you with what’s happening right now globally.

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