CIO Scott Martin Interviewed on Fox Business News 5.27.21

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

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

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

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

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

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

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

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

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

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

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

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

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

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

6:13

CIO Scott Martin Interviewed on Fox Business News 5.25.21

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

9:10

CIO Scott Martin Interviewed on Fox Business News 5.24.21

Program: Fox Business Tonight
Date: 5/24/2021
Station: Fox Business News
Time: 5:00PM

BRIAN BRENBERG: Well, for reaction, let’s bring in our panel, Carol Roth, former investment banker and author of The War on Small Business, Scott Martin, Kingsview, Wealth Management Chief Investment Officer and also a Fox Business Contributor. Welcome to you both. Glad to have you both. Carol, let me start with you. I’m looking at this so-called counter offer coming from Democrats, just one point seven trillion dollars. They came down 10 times more than Republicans apparently went up, according to Jen Psaki. This a counteroffer or is there even a negotiation happening at all right now?

CAROL ROTH: I mean, the whole thing is so insane, Brian, because their definition of infrastructure is so insane based on their definitions. I should be getting a gift card to Nordstrom’s shoe department because I walk around a lot to get from point A to point B.. I think the bigger issue here in the we came down this many percent versus this many percent, the big issue is spending. And we as citizens spend on average for our lifetime earnings just shy of thirty five percent of them in taxes. And in some places, people who live like in the state of New Jersey, it’s just shy of 50 percent. So we don’t need the government getting into any new spending. They need to be finding places where they already have money and shifting it for infrastructure, which should be a priority. All they’re doing, though, right now is saying, OK, well, who is going to pay for it when we should all collectively be pointing the finger back to them and say, no, we don’t want to we don’t want anyone to pay for it. We want you to be more wise with the spending.

BRENBERG: And Scott, you know, this latest proposal actually took down some of the actual infrastructure in the bill. The one thing that the bipartisan agreement would have needed, it’s actually removed here. But let me ask you this. I look at this thing and I say, here’s the strategy. Let’s get bipartisanship on a little infrastructure and take everything else and shift it to that reconciliation bill. And what does America end up with? Four trillion dollars in spending? Is that what’s happening here?

SCOTT MARTIN: Yeah, and that’s a number that it might seem like really small when we get done with all this spending, Bryan, because there’ll be bills beyond bills after this. Look, put me down on the gift certificate or gift card for the Shoe Department because it looks like we’re heading that way. I mean, Carol, and I know being in Chicago, the local issues that government has here on misspending tax dollars. And the other thing that worries me, too, Brian, you talked about bipartisanship. I mean, this is that whole mantra of the government saying we know what to do with your money better than you do on really anything. And one thing to think about is even the Obama administration and even saying that’s as old as time is, how about introducing like a private public partnership type of agreement where you can factor in the private partnership that we can get with local businesses, local experts, local workers, create actual real jobs and not get the typical waste, fraud and abuse that we see with massive spending bills like this. But instead, it’s all like, yeah, we’ll come with a compromise or an exception here and knock it down a few hundred billion dollars and call that a good offer. It’s shameful.

BRENBERG: You know, Carol, you wrote the book on the war on small business. I look at this situation right now. Big companies look at big government and they say, I can navigate that. I know how to work it. I’ve got contacts there. I know how to spend money there. But it’s small businesses who look at all of this spending and beyond that, all the taxes that are supposed to pay for it. And they say we’re the ones who cannot navigate this. We get lost or we get dictated to when spending like this happens.

ROTH: Yeah, I mean, if you think you want to come up with a definition of infrastructure, small business is the backbone of the economy that fits the definition better. But unfortunately, this is all intentional when you have pre-covid thirty point two million small businesses that are all independent minded and want to be left alone and don’t want big government, they are very hard to control. That stands as the polar opposite road block of central planning. Central planning wants to have a handful of big businesses and cronies to deal with. And so what happens? The small businesses end up as collateral damage. And so none of this is unintentional. It’s completely intentional. As you said, the small businesses cannot navigate all of these tax increases, all of these roadblocks to economic freedom. And at the end of the day, this is bad for each and every one of us and for our economy.

BRENBERG: Scott, I only have a few seconds left, but your thought really quick. Does this thing fall apart? And if so, are you happy about that?

MARTIN: Oh, definitely not happy about it, happy about it, the fact of it does fall apart, we don’t get this crazy spend that’s going to possibly come down the pike. I think eventually they’re going to work something out, Brian, but they’ve got to change the face of this thing pretty quick and pretty fast. Otherwise, it’s going to be a nasty fight

BRENBERG: Carol and Scott wouldn’t have anyone else to talk about this than you. Thank you for being here today. Appreciate it.

4:53

CIO Scott Martin Interviewed on Fox Business News 5.13.21

Program: Your World with Cavuto
Date: 5/13/2021
Station: Fox Business News
Time: 4:00PM

CHARLES PAYNE: As President Biden was meeting today with a group of Republican senators on infrastructure, Florida Republican Senator Marco Rubio leading another group of Republicans and saying, forget spending, it’s time to get Americans working.

MARCO RUBIO: Enhanced unemployment benefits are creating an incentive for people not to return to work until they expire because people are lazy, i’m not accusing anyone of being lazy, it’s because people are logical, because it’s logic that if you’re going to make close to what or as much, in some cases more than what you do in your work, you’ll go back to work when that expires. We have a labor crisis in this country.

PAYNE: All right, so who’s right here, I want to go to Fox Business contributor’s Scott Martin and Gary Kaltbaum, along with Optimal Capital’s director of strategy, Frances Newton Stacy. Gary K, I got a feeling I know what you’re going to say, but we’re sure we’ll be going more spending or more workers.

GARY KALTBAUM: Well, look, it’s unfortunate that the president said there’s no data. He can come to Lake Mary, Florida, and I’ll walk him into some restaurants and they’ll tell him exactly what’s going on. The theme parks are offering bonuses, and all you have to do is just go print out what all the states are giving before this extra on unemployment. There are some states that are paying out nine hundred dollars with the extra per week. So people are definitively staying home. I’m pretty sure the President knows this. I wish he would roll this back sooner rather than later. Why? Because there are a lot of businesses just getting off their back that can’t go one hundred percent because they can’t find people to show up at this juncture.

PAYNE: To be clear, the administration says they haven’t seen the evidence because they know it’s out there. They’re just saying they haven’t seen it yet.

Real kid. You know, Frances Newton Stacey, right. Turn around three o’clock. The biggest trend on social media is we are closed. In other words, the left now saying we’re not going to go back to work, even with the CDC guidelines, until we get more money. We feel like we’ve got big business on the ropes. McDonald’s raise their prices so we can still see a worker crisis.

FRANCES NEWTON STACY: Yes, we definitely could. I think what’s kind of weird is that taxes are going to go up, right? And these companies that made it through covid and God bless the ones that didn’t, the companies that made it through covid have a record amount of debt service probably on their books. And so I think that this sort of demand and supply in the hiring is going to kind of even out toward the end of the year. Also, I think that there is some other sort of, you know, headwinds coming in the system that might kind of even out the record amount of pent up demand that we’re seeing play out now. So this hiring thing could even out. But I do agree that it should be handled on a localized basis, because if you just cut it off at the federal level, you really do risk leaving some people behind. And locally, you can analyze that a bit better.

PAYNE: Yeah, you know, at this point, though, Scott, we’re talking about small businesses to Gary’s point, it’s gone on a long time. It was a noble thing to do. This has been this has been extended now two or three times. So the question is, do we need it right now?

SCOTT MARTIN: No, and I love how Marco Rubio used the word logic, like you don’t need evidence, I mean, it’s easy to ignore the evidence if you close your eyes. But like logic. I mean, I get it, too. If you’re getting paid to stay home or go out and party, go to the beach, whatever you want to do after you’ve been cooped up, by the way, thanks to the government for a year. Yeah, I would do that as well. I mean, I’ll say that right now. So the fact that we want to get this great reopening going, we want the markets and economy to enjoy a normalized environment, yet we’re going to keep this stimulus going. It’s just crazy to me. And it’s because the government wants to control you. They still want to have control. They still want to have you dependent and under your thumb for funds. And so as long as we are in this position, I’m now concerned, Charles, about this great reopening and the pent up demand that Frances was talking about, because there’s no way that demand is going to be satisfied if you’re a small business, a big business, if you can’t find the workers to service people.

PAYNE: You know, Gary, we just heard from President Biden at the top of the show, he came out, he took a victory lap, and he’s been in an awkward position because I think a big part of this is that they have to sell a certain amount of fear, a certain amount of urgency. There’s no way you can push through another four trillion in spending and at the same time say things are great.

4:24

CIO Scott Martin Interviewed on Fox Business News 5.12.21

Program: Cavuto Coast to Coast

Date: 5/12/2021
Station: Fox News Channel
Time: 12:00PM

DAVID ASMAN: Kingsview Asset Management CIO Scott Martin and former Dallas Fed adviser Danielle DiMartino Booth, Danielle first to you. We are heading into a full blown energy crisis. Can President Biden avoid the blame here?

DANIELLE DIMARTINO BOOTH: I do think the administration can probably get around this particular issue, there is gas in the pipeline, there will be relief. It will take a matter of days. There is a lot of panic buying going on. I’ve heard from from colleagues in Washington, D.C. that people have shown up at gas stations with empty plastic bags to fill up. So they’re hoarding gasoline. But it does appear that the Biden administration could have been a little bit quicker on the draw in terms of responding to this and and broadcasting the message that relief is on the way, regardless of what happens with the pipeline itself. So there was a delay and these types of delays can be very damning, especially in light of the current circumstances we have where where the policies of the Democrats right now, when adjusted for inflation, you actually have massive pressure on wages as well. Again, I know this story has been covered over and over because people are being paid more to stay home than they would be.

ASMAN: But we’re going to talk about that. We’re also going to talk about the inflation numbers, which shocked everybody today. But I want to keep on gas for a second and energy specifically, Scott, because just a year ago before the election, we were we were proud and happy that we were energy independent. Right now, the way they’re solving this problem is by importing fuels. We have to import fuels just to get enough for the gas stations. I mean, what a change in a year, by the way– Scott, what we’re looking at now, that’s that’s something a picture that I took on November 7th just after the election. Twenty twenty. The price of a gallon of gas in New Jersey was two dollars and one cent. Go ahead.

SCOTT MARTIN: Yeah, same here. Chicago is low twos as well, David, and now rocketing up towards four bucks, you’re right. I mean, nothing like giving up some of our national sovereignty as far as energy policy that Trump had instituted, which Biden has obviously rolled back and giving up that sovereignty so that we’re reliant on foreign oil. Again, I’ll tell you, Danielles, right. I mean, the messaging from this administration has really been the problem. I don’t foresee a major energy crisis coming, thank goodness. But look, let’s look what’s happened with the Keystone XL pipeline, other kind of, let’s say, iterations out of the administration against the energy sector. Those have not been good. Now, what’s been interesting, though, David, if you can believe it, is since the election and since the inauguration, one of the best sectors to own in the S&P. Five hundred has been, you guessed it, Energy. We own energy at Kingsview in some of our portfolios. I think that’s the way to combat, along with materials as well, some of this inflation scare that’s circulating throughout the market. And you’re seeing that in the stocks today.

ASMAN: All right. Let’s talk specifically now about inflation, Danielle. Consumer prices jumping four point two percent year over year. That is the biggest annual gain since two thousand eight stocks, of course, went down on the news. I’m just wondering where this ends. Is this just the beginning? Because as we were talking before, that doesn’t even count wage inflation, which clearly is coming as a result of trying to lure people back into those jobs that are waiting for them.

BOOTH: So, you know, I think the real problem here is not necessarily that four point two percent headline, but we had zero point nine percent increase in the core CPI, which the Federal Reserve pays very close attention to. That’s the biggest increase since nineteen eighty two. So again, it’s going to be about messaging. Vice Chair Richard Clarida, what’s on the wires today, saying that he was, quote unquote, surprised by the increase in inflation. We can’t not have the people, the Federal Reserve saying out loud that they’re surprised. We knew that base effects were coming, but the month over month changes in and of themselves are extraordinary and in large part do reflect kind of a confluence, if you will, of all of the supply chain disruption, the shortages that we’ve seen everywhere. In addition to spring break, we saw airlines and hotels, those types of prices go through the roof. That’s because a lot of Americans splurged, went out, got out of the house, hit the road in March, during spring break, because they could. So, you know, again, there needs to be more clarification and certainly not any surprise out of Federal Reserve officials.

ASMAN: Well, and, Scott, the fact is, is that we’re forgetting the main factor here in my mind, which is government spending. I mean, we’re spending trillions and trillions and trillions of dollars. When you do that, you get inflation, right.

MARTIN: To some degree you do, David, I do believe, though, and I agree with Federal Reserve Chairman Jay Powell in saying that is a transitory type effect fact. I mean, I, I kind of challenge or channel my inner Milton Friedman here by saying inflation over the long term, David, is more of a monetary phenomenon. As Danielle hit on. That’s got to be something that’s more wage related, which, yes, I think is starting to come back. But technology is providing some sort of deflationary environment. Counterintuitive to that. The last thing I’ll say, though, to David, you know, pushing, gosh, what is it now, 30 trillion in national debt. We’ve printed, you know, almost 10 trillion or looking to print 10 trillion. Now in the latest covid relief stuff, if you add it all up correctly, if we are to pay that debt back, David, we’re going to need inflationary dollars to do that. We have to pay back that debt with cheaper dollars. So we actually better hope for some inflation down the road. Just not crazy.

ASMAN: You quoted Mr. Friedman, Danielle. I’m going to quote him, too. He said, Inflation is very simple. It’s too much money chasing too few goods. And right now we have a lot of extra money in the markets because of the Fed buying up those bonds. And we have a lot less goods because we can’t get people back to work.

BOOTH: You know, it’s a terrible combination, and I think that if the administration and if the Democrats don’t understand at this point that too much stimulus money can be a bad thing for the economy, it can produce unintended consequences.

ASMAN: But the president and forgive me, the president doesn’t get it. The president is saying it’s not related, that the the money that we’re spending on keeping people at home is not related to the fact that we have eight point one million unfilled jobs. He said there’s no connection.

BOOTH: Then he’s not connecting the dots. It’s pretty simple map, the average American right now is getting paid seventeen dollars and fifty cents an hour. That’s just what the unemployment benefits don’t trust. I’m not even talking about rental moratorium evictions. Right. Just just look at that. It’s simple math, president by simple math.

ASMAN: All right. Well, we’ll wait and see if he wakes up or the administration wakes up to that simple math. Good to see you both, Danielle. Scott, thanks very much. Back to what?

6:54

CIO Scott Martin Interviewed on Fox Business News 5.7.21

Program: Making Money with Charles Payne

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

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

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

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

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

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

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

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

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

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

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

6:54

CIO Scott Martin Interviewed on Fox Business News 5.4.21 Pt 1

Kingsview CIO Scott Martin discusses market expectations and the response to recent tech earnings reports.

Program: Cavuto Coast to Coast
Date: 5/4/2021
Station: Fox Business News
Time: 12:00PM

NEIL CAVUTO: Meanwhile, do want to draw your attention. We are showing the Nasdaq for a reason, down three hundred forty-five points right now, led by big declines in the likes of Amazon and Microsoft and Alphabet and a host of others. The heavyweights that were leading the parade are now leading the exit from the parade for now. Scott Martin, Kingsview Asset Management. We’ve got Jack Macintyre, Brandywine Global Portfolio Manager. Scott, to you first off, If I had a dime for every time I’ve seen the Great Correction and ensue technology stocks and titans. I’d have a lot of dimes right there. So the latest argument is they’re coming back to Earth because interest rates are rising. Capital gains taxes could be rising. A good excuse to sell these high flyers while you still can make some money. So is this time any different from some of the prior.

SCOTT MARTIN: Yeah, and you could have made a few dimes plus, Neil, if you actually bought into those corrections and actually tried to avoid the fear trade that was out there in the selling and actually take advantage of lower prices. Look, these tech stocks, these high flyers, these momentum plays don’t like the notion of higher interest rates. We’ve learned that a lot this year. Here’s the one discouraging thing, though, Neil. The companies you mentioned earlier on, the Apples, the Googles, the Microsoft, the Amazons, all had blowout earnings of recent notes the last couple of weeks or so. Some of the earnings reports that these companies had were amazing. And the company stocks have not gone up since they went up for like a day after and then pulled back considerably in some cases sense that’s a little discouraging from the standpoint of what the market was expecting, what the market got and what we’re seeing from the stock prices themselves.

CAVUTO: You know, maybe adding some soul to the selling wound today, Jack, was this news out of Janet Yellen at this Atlantic conference in which she said that rates would have to raise somewhat to keep the economy from overheating? I don’t think she said anything that the average market watchers would be stunned by, but maybe coming as it does a week after we heard from the Fed chairman, the president, Fed Chairman Jerome Powell, say that that was unlikely. I’m wondering what’s going on here. What do you think?

JACK MCINTYRE: So, you know, we’ve had rates move up pretty significantly since August of last year than in February and March, the long rates really started accelerate. So, you know that I think that’s sort of reflective. Neil, one of the things I think might be going on as we get into twenty twenty one, you know, markets are forward looking. They’re going to start looking at twenty twenty two. Hey, we’re we’re probably at peak economic growth, peak earnings growth, you know, and certainly a peak fiscal stimulus. So I don’t know. And I’m again, I’m not trying to pick a top in the market, but I just to me, it kind of makes sense that we start to see maybe a little bit more two way flows in certain sectors. And tech is certainly one of those.

CAVUTO: Yeah, you know, it’s hard to glean trends in a market like this, but it’s one that bears watching and we’ll keep watching it Scott and Jack, thank you both very, very much.

3:00

CIO Scott Martin Interviewed on Fox Business News 5.4.21 Pt 2

Kingsview CIO Scott Martin discusses inflationary concerns and the normalization of inflation rates.

Program: Your World with Cavuto
Date: 5/4/2021
Station: Fox News Channel
Time: 4:00PM

NEIL CAVUTO: Now, I know a lot of you are looking at this. Oh, my gosh, you’re losing your head. How bad does this all get? I have to remind you, this is still relatively contained. And for those of you who are getting a little nervous about a three percent something mortgage, did I ever tell you the time my wife and I got our first mortgage and it was over 13 percent? My point is my point is that it has been a lot higher and a lot worse. But again, it’s the trend that has some folks worried on Wall Street and that could eat into earnings and real gains that we’ve been seeing and the competition for stocks as well. After all, if you can buy a Treasury Bond or note from Uncle Sam, fully guaranteed, why would you risk it in the market? That’s again, one of the fears, even though those rates are still very, very low. Let’s get the read from Danielle DiMartino Booth a former Dallas Fed advisor. I might point out on our own, Scott Martin wasn’t even alive when we had the last inflation spiral. So, Scott, that makes you a perfect guy to talk about what’s happening right now. I think there’s a generation of people who don’t remember this but are freaking out about it because they’ve heard people talk about when it was much higher. They just know that it’s higher than what they’re used to. What do you tell them?

SCOTT MARTIN: I agree, and I think the pace of the higherness is, let’s say Neil, is really what’s scaring folks, because you’re right, we’ve been facing this inflation bugaboo now for, say, three decades, since the 70s at least. And so if you look at the pace at which though inflation is starting to increase and now we’re getting that pickup in economic growth, obviously we have a lot of government spending behind that as well. You’re starting to see some of the inflation numbers catch up and you make a good point, even though inflation may double from here, let’s say, and get up and say, oh, my gosh, close to four percent. That’s nothing like we’ve seen in past decades. But it still is going to feel like a lot different of an environment than we’ve had in the last several years, where basically we were growing for free without inflation and without much wage growth either.

NEIL CAVUTO: And we’re spending like crazy, Danielle you know, you know these figures far better than I, but I was reading that for the next couple of quarters, it looks like we’re going to be borrowing upwards of at least one and a quarter trillion dollars to support the spending already committed. Forget about the trillions more the president is planning on. So that generally means still higher rates. What do you think?

DANIELLE DIMARTINO BOOTH: Neil, if you’re asking me sorry, I thought I thought you were addressing Edward, if you’re asking me, I think that that’s one of the reasons that Janet Yellen stepped into her old self as former head of the Federal Reserve today and mentioned the specter of rising interest rates, which is, by the way, not under her purview. That is strictly Jay Powell’s world. But she

CAVUTO: Why did she do that? Now she’s a former Federal Reserve chairman. I get that. But she was stomping on someone else’s turf. And I wonder if that was by design or what did you read into that?

BOOTH: There is look, there is no way in the world that she did not understand the weight and the magnitude of what she was saying. In theory, the Federal Reserve official leaders should not talk about the US dollar. That is the place at the US Treasury secretary, vice versa. The US Treasury secretary is not supposed to be talking about interest rate policy, which is supposed to be set by an independent, apolitical, unelected group of individuals. Jay Powell has spent the last part, the better part of the last week, insisting that they’re not even thinking about thinking about slowing the growth of the Federal Reserve’s balance sheet, which, by the way, is step one before they could even contemplate raising interest rates. And she just beat him well over the finish line and slaughtered all of the messaging that he has carefully crafted for the past weeks and months. So this was very unusual and I would add highly inappropriate.

CAVUTO: You know, Scott, if you think about it, the backdrop for this is all good news companies earning money hand over fist, they’re doing much better than thought. The technology companies, the very ones getting beaten down yesterday and today are the ones that are reporting these off-the-chart numbers, retail sales, soaring, car sales doing very, very well. Consumer confidence, the highest in years. So that’s the backdrop. I guess the balance to that backdrop is people fear rates go still higher and it could be a short-lived good market environment. What do you think?

MARTIN: Well, and rates are going to go higher, and I think at some point we want to see that interest rate curve normalize. And too, Neil, inflation isn’t a bad thing as long as it’s not out of control. And we’ll actually see that show up in stock prices if these companies have pricing power, which they’re starting to get. So as long as this pace doesn’t go out of control, some normalization of the interest rate curve, some normalization of interest or inflation rates, rather, should be good for this market and it should be able to tolerate it.

CAVUTO: All right, final word on that. I wish I could have more time with you guys to regale you on when my wife and I got our first mortgage in the 80s and oh, you’ve heard that a hundred to two hundred times.

BOOTH: You’ve never seen before, Neil.

CAVUTO: Yeah, right. Right, right. All right. Thank you guys very, very much

5:02

CIO Scott Martin Interviewed on Fox Business News 4.28.21

Kingsview CIO Scott Martin discusses how the stimulus has affected consumer demand in technology. He also addresses capital gains tax rates, income tax rates, and market volatility.

Program: Your World with Neil Cavuto
Date: 4/28/2021
Station: Fox News Channel
Time: 4:00PM

NEIL CAVUTO: It is probably that more closely watched of earnings in general. Forget about this technology, because Apple has become a key economic barometer pretty much for the country and maybe the markets as a whole. Its sales and earnings sizzling in the latest quarter usually consider a slower quarter after the busy fourth quarter Christmas shopping season. But this one was just nothing less than a blowout. Overall sales at the fifty four percent higher than the year ago period, much stronger than they thought. Just to put it in some context, right now, the number of iPhones it sold sixty five percent more than last year, the number of iPads, about 70 percent more personal computers around seventy eight percent more after hours trading. The stock is jumping continue. A trend we’ve seen with the likes of Facebook and Alphabet, to a lesser extent with Microsoft to Art Hogan, National Securities Corporation, Scott Martin Kingsview Asset Management, Art to you first. What do you make of what’s happening with Apple? And more to the point, technology in general?

ART HOGAN: Right. You know Neil, one of the things we think about a lot as we sort of normalize the economy is how many of these companies really pulled forward a lot of demand because of the pandemic. We’re all working at home. We knew we need new laptops and iPads and phones, et cetera. And clearly this quarter shows that that’s not the case for Apple right now. They continue to create demand for their new products. And clearly, we’re just at the tip of the iceberg for the 5G rollout. What’s more interesting to me is that they just added 90 billion dollars to their current buyback program and that still has 30 billion left on it. So it’s a very shareholder friendly report right here. And the numbers just blew everybody away.

CAVUTO: Yeah, it’s increasing its dividend for a lot of our viewers who sort of get caught in this and want to know what does that mean? Obviously, when a company expresses enough confidence to buy its stock, that limits the available stock, lets the market go higher and all of that. But having said all of

that, Scott Martin, it is a good reflection on the American consumer, in this case, the global consumer as well, coming out of this pandemic. Not that they were hurting during it, but what do you make of that consumer’s appetite to buy, you know, items that aren’t necessarily cheap?

SCOTT MARTIN: It’s a great tailwind and some of that money, Neil, is coming for free in the mail or coming via direct deposit from your friends in Washington, D.C., makes those purchases probably a little easier now. Art made the point. And you did as well. I mean, we’re in the midst of the early innings, really, of a five G iPhone upgrade cycle. So that’s really, I think, what it’s showing up in this quarterly report. You know what else is interesting, though? That could be just pursuant to maybe more of that consumer demand that’s out there, Neal, is the services part of Apple, which really I mean, gosh, guys in the last few years has really taken on a life of its own. I mean, you’re talking about Apple, iCloud. You’re talking about the App Store. You’re talking about Apple Music and Apple Arcade, which, yes, I play at home with my kids. Those things are the high margin services products that the company has, Neil, and those are firing on all cylinders to. So this company, Soup to Nuts, is really taking care of business here and the stock price is reflecting it.

CAVUTO: You know, if I could just step back from this technology, the markets in general, are you bullish with all this because the markets, which are on a tear under Donald Trump, continue to build on that under Joe Biden. And I’m just wondering how long this goes on. Are there enough doubters out there, enough issues or worries to justify it? Usually when everyone capitulates and say, oh, the hell with it, I’m just writing this bull as long as he can go. What what do you tell people?

HOGAN: Well, I’ll tell you this, I think that interestingly, this has been one of those years where earnings estimates have gone higher during the quarter. That’s only happened twice in the last 10 years. So, you know, we’re clearly seeing the beginning of what’s going to be some pretty parabolic earnings growth and obviously GDP growth as the economy normalizes. So I don’t think we’ve been able to correctly factor in what the S&P 500 can earn next year. In the middle of last summer, we thought that was going to be about one hundred seventy two dollars. Coming into this morning, it looks like one hundred eighty six. And I bet you anything it’s going to be north of one hundred and ninety dollars for the S&P 500 earnings for twenty twenty one by

the end of this reporting season. And that means if you don’t even change the multiple, you get the forty three hundred in the S&P 500. So yeah, I think there’s there’s more tailwinds and headwinds right now. Now the stocks need to take a pause at some juncture. And I think we’ve had some rotational corrections technology sold off a month ago. It’s back in favor now. Cyclicals are selling off right now. They were very much in favor for the entirety of the first quarter. The Russell 2000 had an eight percent draw down its back in favor again. So I think what we’re seeing is rotational corrections, which makes it a very healthy market.

CAVUTO: You know, Scott, if I could throw out a very unhealthy development in Washington, maybe healthy as a market, see a stimulus, a stimulus, right. But trillions of dollars in spending, I notice Wall Street doesn’t have any discretion as to whether it’s coming through more spending or tax cuts, but they seem to like it just fine. If they’re worried about it, they have a funny way of showing it. What do you think?

MARTIN: Yeah, wild parties are fun until your parents come home. I think I know that from experience, maybe have a flashback or two, but that is a reality.

CAVUTO: I never went to parties I was very busy at home studying and as was Art. So we cannot relate to that.

MARTIN: I was the one who had the parties that nobody would come over to Neil. Yeah. So maybe we are in that same camp. But the reality is, Neil, DC, though, is addicted to this, just like students are departing in the sense of like they keep spending, they keep putting out these numbers, they keep keeping the consumer on the government dole until they can’t stop anymore. And so at some point, this does have to be paid for. I think we’re starting to see indications of that. Capital gains taxes, corporate tax rate hikes, income tax rate hikes, that stuff will definitely show up sooner than later. And that’s when I think we start to have some market volatility here.

CAVUTO: Art, a new investor, comes to you today and says, Art, I want it on this market, I’ve never been in on it, but I hear all these good things. I caught you and Scott last night and I want to I want in. What do you tell them?

HOGAN: You tell a new investor that you want to have a barbell approach in twenty twenty one, where on one end of that barbell you’re going to have thematic fast growth companies. 5G is one of those themes. Cloud computing and cloud security are two of those other themes. Apple falls into that category of 5G on the other end of that barbell. I want you to have exposure to economically sensitive cyclicals and we’re going to look at your portfolio and keep that barbell level every two months so that if technology is running ahead, we’re going to take profits and put it in the cyclicals. If you did that in 2020, you outperformed the S&P 500 by four hundred and seventy five basis points. And the same thing is holding true through the first quarter of this year. So I think that’s a new investor has to look at this as balanced and diversified.

CAVUTO: Yeah, it’s your perspective for me, I know for young people, it’s it’s longer term can be a ways know people like Scott, but for me, long term is lunch tomorrow. So we’ll have to sort that out. But, Art Scott, thank you both very, very much.

7:07

CIO Scott Martin Interviewed on Fox Business News 4.23.21

Kingsview CIO Scott Martin talks about bullishness sentiment, historical corrections in the market, and what factor might mitigate pullbacks.

Program: Making Money with Charles Payne
Date: 4/23/2021
Station: Fox Business News
Time: 2:00PM

CHARLES PAYNE: Meanwhile, there is other stuff happening, tangible stuff, in fact, that should inform and really, really help investors and I think encourage investors. Joining me now to discuss all of these things Kingsview Wealth Management CIO Scott Martin. TJM Institutional Service Director Jim Iuirio, and Advisors Capital Managing partner Joanne Feeney. Jim, let me start with you. If the administration was looking to see how Wall Street would handle the world’s highest capital gains tax. I think they got their answer. You think they’ll listen?

JIM IUIRIO: Well, first of all, they could have just asked us ahead of time what we are going to think about a forty-three percent cap on the gains. They didn’t have to actually plug that out. Remember, they are politicians. So if there were not a forty three percent capital gains rate, they know that’s absurd. They probably have in their sights realistically at 30 percent. And then they want to make us think that we negotiated back. So we feel like we got some sort of deal. But let’s keep it in perspective. 30 percent is awful. It’s toxic and destructive policy, and it’s destructive for the middle class. Those people make over a million dollars that they’re trying to target. Those are the people that employed the middle class. So the question becomes, are they willing to signal that they’re anti wealth or against the wealthy at the risk of damaging the middle class and damaging the economy? And I think the answer to that is yes, I think they are willing to do that. I think it’s terrible policy. And I think that if they really get far in pushing it, that Wall Street will have a bit of a tantrum. But in the end, I think it’ll be OK for stocks.

CHARLES PAYNE: Yeah, you know, to that point, it feels like this administration is really worried about their strategy is to win the polls and message things and public relations things and get the media to win the polls and then try to force the action. You know, Joanne, of course, there was also even coming into yesterday, it felt like different things bother in this market. I mean, I’m looking at the internals every day at the close. They’ve been unimpressive, even on Update’s volume drying up. Even today, we’re having a really strong day, you know, with respect to the bounce back economic data. And yet volume is extremely low again. Where is this trepidation coming from?

JOANNE FEENEY: Well, you know, Charles, I think a lot of folks are a little bit fearful, valuations in many stocks are quite high and a lot of investors have pretty concentrated portfolios and they’re trying to figure out what to do potentially with rising rates on the horizon and maybe that capital gains tax. That’s why we think right now index investing can be particularly fraught. You know we invest in individual stocks for our clients, either for appreciation or looking for income. And we still think you can find good values here, but you just have to be a lot more selective because of those real significant concerns over some of the headwinds that will come into play once we get through this Goldilocks period of fast growth, lots of fiscal spending.

CHARLES PAYNE: I’m going to come back to you about those individual ideas, because I’m all about individual ideas to, you know, Scott now, despite all of this angst, right, there are two things that have remained constant. The market is higher. It’s, in fact, having a pretty good year So far. Individual investors remain very bullish that AAAI number is a monster. It won’t go down. But I thought that that was supposed to be negative for the markets. What’s going on here?

SCOTT MARTIN: Well, it could eventually be negative, Charles. I mean, yes, you’re right. The bullish bullishness sentiment, easy for me to say is, you know, that’s that’s a concern. And I think the funny part, as you mentioned, just with behavioral finance, I mean, you look back to some of these big corrections, whether it was, you know, last March, the two thousand fourteen, fifteen sixteen area, the crash of 08, of course, and then other ones, when the sentiment gets really low is actually the time you want to buy, when things get bullishness at these heights, when it gets really sanguine. Those are the times you should actually be somewhat careful. So I agree with you. I think that will eventually happen again because it has proved itself out over history. But it can the market can stay bullish and the market can keep going up until that last investor is in. That’s when things will turn over.

PAYNE: You know, Joanne, I want to come back to you because I’m thinking about this individual stock thing and earnings season, we’re two weeks and really the only word I can use is amazing revenues, earnings, crushing it much better than than we thought they would be on January 1st and April 1st. But for the most part, a lot of these stocks are popping in the aftermarket, then selling off. So how do you find I mean, someone who zeroes in on this, it certainly must inform you, particularly the ones with these amazing numbers and for whatever reason, they’re selling off how should our viewers deal with that.

FEENEY: Yeah, you know, it should be expected to some extent, expectations were really high coming into this earning season, right? We knew these companies were getting back to where profits were rising. So in some sense, expectations were above the official numbers….

PAYNE: So let me jump in – let me jump in. Would you would you sell then, like a Whirlpool? Two days ago after the closed Whirlpool go straight up yesterday, it got hammered. I didn’t see it today. But if I’m holding Whirlpool, what message do I take the earnings in the initial pop or do I sell with the crowd?

FEENEY: Now, you look at the fundamentals, Whirlpool is a stock we’ve owned for a long time, we really like it here. The temporary sell off is some folks may be taking some profits, but you got to look at the fundamentals. And the outlook for Whirlpool is really strong because look at the housing market, right? Housing market is on fire. People are going to be buying new appliances. And that’s not the only place one can look for these good opportunities. You know, auto is doing very well. Even with the slowdown in production company like Texas Instruments or NXPI, really gives investors opportunities, even if there’s a sell off at earnings.

PAYNE: Jim, your thoughts on the earning season so far? What have you learned? What do you like or dislike?

IUIRIO: The one thing and Joanne mentioned that you mentioned it too the one thing that makes me a little bit more cautious is the fact that some acceptable earnings have been met with some selling. But realistically, for me, nothing matters as much as big tech earnings season, which is next week. So to me, I’m going to be looking at that. This was three weeks ago and I think the market was anticipating that interest rates were going to go much higher. I think that we’re going to scrutinize those tech earnings more based on those discounted cash flow models that tech stocks, you know, we presuppose such high earnings in the future now that we think that rates are going to be stable. And thank you for bad policy for stabling at stabilizing rates yesterday. Now, I think some of those tech earnings will be more accepted. So I’m actually looking and I think the Nasdaq is going to break through fourteen thousand in the next couple of days, particularly after those earnings. And I’m looking to get long some of the longer some of those names afterwards. But to me, earnings season is tech, earnings is 60 percent, bank earnings is 20 percent. And the rest of it is just bits and pieces.

PAYNE: I got you. Hey, let’s talk about some other catalysts for a potential rally, Scott buybacks, corporations came in sitting a record amount of money. A lot of them are telling us they’re going to put it to work, buy back their own stock. What does it mean for the market? And are there any names that may have swayed you because of this?

MARTIN: Well, I think Jim talked about some of the financials, we’ve seen it in some other areas where you’ve had a lot of cash, like you mentioned, Charles, on the balance sheets. I mean, don’t forget too – it could be buybacks, maybe some dividend increases. I mean, you’re right. Cash was not only king, but cash was also all the gestures and all the servants and everything in cash was everywhere for a while. And it’s still kind of is. I mean, so we have like this ability for these companies now to utilize that cash to issue debt at low interest rates to do so. And I think that’s going to be the continuing driver that will mitigate some of the pullbacks that we’ve talked about in the segment so far when those buybacks kick in, when maybe dividend increases come down the line. Because don’t forget, guys, as companies are out there and having, you know, let’s say back in the day, favorable dividend rates maybe at two percent. But is that tenure creeps up closer to two percent. Maybe companies start raising their dividends in anticipation of something better down the line for their own future. So therefore, health care companies and things like that might actually start raising dividends.

PAYNE: All right, and Joanne, let me ask you real quick about the reopening trade, is it back on and what do you like?

FEENEY: Yeah, I think we’re going to continue to see that play out over the year, the reopening trade is good for energy stocks. We like a couple of banks, you know, to the point of seeing increased buybacks and increased dividends. You know, we think Citigroup is in that position. MetLife is in that position. JP Morgan, these are stocks we’ve held for clients for a long time. And we think there’s definitely more room to run there. But you’ve also got like a TJ Max, for example, that really has underperformed, but really is going to benefit from the reopening as folks go back into the brick and mortar shops, Constellation brands, Casey General Stores, people getting back out on the road, back out to bars. So a lot of opportunity out there to play this rotation.

PAYNE: Yeah, well, we already saw it in that last retail sales report, which probably was just the tip of the iceberg. They call it revenge buying. We’ll see. Scott, Jim. Joanne, thank you all very much. Have a great weekend. Fantastic stuff.

8:39