CIO Scott Martin Interviewed on Fox News 1.28.22

Kingsview CIO Scott Martin discusses buying the dip and purchasing companies that are “down with the crowd”, plus thoughts on Amazon and Google.

Program: Making Money with Charles Payne
Date: 1/28/2022
Station: Fox Business News
Time: 2:00PM

CHARLES PAYNE: So, you know, on this show, I’ve been talking about this stealth market crash because it’s been going on for literally months and it’s been masked, however, by the major industries. I mean, just for example, just this year, the S&P is down nine percent. But forty nine percent of the names are down 20 percent or more from their 52 week high, and the carnage is even worse than that on the Nasdaq in the Russell 2000. This is why I think investor sentiment rates are so low because in real life, investors are still pumping in tons of money into this market. Sure, it’s obviously moving to different niches, but there’s still buyers, even as they feel the pain. The question is, does it actually make them the smart money? I want to bring in Michael Lee and Scott Martin. The number one axiom in investing is buy low, sell high. So that means buy the dip, Scott. I mean, the retail investors are doing they’re doing this during the middle of a meltdown. Does that make them the smart money?

SCOTT MARTIN: At times it does, Charles, and it’s easier said than done, certainly, I mean, psychologically, it always doesn’t feel the best. In fact, some of the best trades I’ve made are ones that I had to kind of close my eyes and hit the button on. So I agree, I think on some of these big down days, we’re getting a ton of volatility, both up and down these days. You got to pick up stocks that you like, maybe add the positions that are down because these are long term holds for most people that have good prospects going forward. Once we get through this malaise.

PAYNE: Mike, I know you have been bullish throughout this entire period, so I would assume that you like this approach.

MICHAEL LEE: Yes, Charles, yes, and I would have to say, though, this kind of depends on what your expectations are, that if we have a big sell off that you’re going to make your money back or get a quick trade, I’d say day trading now is kind of as hard as it’s ever been on the backs of one of the easiest periods to day trade ever. But, you know, keep in mind, this is not the first led the first Fed led sell off over the last decade. We had ones in two thousand eighteen 2016, 2015, 2014, 2013, 2011, 2010. Anybody who bought into those dips 12 to 18 months later was handsomely rewarded.

PAYNE: What I’m talking about, you know, some of these areas that that have really cause, I think, investor sentiment to get hammered. One is SPACs. And then, of course, they’ve underperformed the market by a mile. This month, 14 planned SPAC offerings worth $4 billion have been pulled. You know, Mike, I actually love it. Now I’m hoping that maybe with stuff like this that maybe somehow the FCC demands more transparency. I know the onus is always on buyer beware. But things like this, I think, have given the market a bad name.

LEE: Well, Charles, you know, I’ve said it before, I’ll say it again, I hate SPACs, and you can make these things so transparent, they’re translucent. The fact of the matter is the incentive for a SPAC is to do a deal. And, you know, the bulk of the time they overpay for those deals, which is not the shareholders interest. And SPACs that actually work out and people make money on those are the exception, not the rule. I would I would. You know, you want to steer clear landmines. I’d steer clear of SPACs in any market environment,

PAYNE: of course, have been a lot of land mine, Scott. Even without SPACs coming into the session, 44 percent of names on a Nasdaq Composite were down 50 percent or more. Now, surely they don’t all deserve that fate. So looking to these ashes sifting through the carnage? Where do you see some opportunity?

MARTIN: Yeah, there are a lot of dead bodies out there, Charles, and you can find some good ones, I think, to pick up here. I mean, two that we like right now are Workday and Zebra Technologies, two names we’ve talked about on the show before with you just again, stocks that I think are oversold, stocks that do make money, stocks that have nice prospects built into recent earnings reports. And I think their earnings are going to be very good this quarter and next. And therefore, these are companies that are just down with the crowd. So therefore you go into those ashes, as you mentioned, and pick up some stocks that have some real prospects here to grow going forward. And they’ll be handsome rewarded when the when the market bounce bounces back.

PAYNE: Mike, what are you looking at?

LEE: So, Charles, next week we’ve got earnings from Facebook and Google and while I would say from an ideological standpoint, these companies are pretty evil companies, but they’re printing money left and right. Saw, you know, you saw with Apple and you saw with Microsoft that these mega caps, the reason why they are mega caps is their earnings power and how successful they’ve been. I don’t think that changes. Facebook is down 22 23 percent from its September high. You could get it at well, I guess it’s Meta now. But but owning these names into earnings is probably not the worst idea. All right. And I’d say, you want to be adding in this sort of ugly environment of multiple contraction. So as these companies continue to grow at double digit growth rates in the top and bottom line, you know, two or three years from now when you have some multiple expansion, you know you’ve taken advantage of the earnings growth as well as a multiple expansion, a more favorable market conditions.

PAYNE: Scott, I’ve got just 20 seconds, but one or two names next week. Earnings Do you want to be in before the earnings report?

MARTIN: Yeah. Two big ones Charles, Google and Amazon. I mean, have you waited in the S&P and Nasdaq, of course, and they can save this market. So seeing how Amazon does reflective of the consumer, how Google does reflective of crowd cloud it, that is an internet. You’ve got these two names. You could actually come in here and really let this market back off the ground.

PAYNE: Michael Michael Lee and Scott Martin to the best. Thanks a lot. I really enjoyed that conversation. I hope people were taking notes.

5:09

CIO Scott Martin Interviewed on Fox News 1.26.22

Kingsview CIO Scott Martin discusses how the market has reacted to the the Fed’s involvement. He talks about the market now as compared to six months ago, supply chain issues and future earnings in Q2 and Q3.

Program: Cavuto Coast to Coast
Date: 1/26/2022
Station: Fox Business News
Time: 12:00PM

JACKIE DEANGELIS: Meantime, of course, the market’s worried a little bit about the Fed worried a little bit about inflation. How are the two going to come together here? Let’s hear from Kingsviews Asset Management CIO and Fox News contributor Scott Martin and also Ben Ryan, Capital Management founder and president Shana Sissel. Scott, I want to go ahead and start with you because we’re going to hear from the Fed this afternoon, and Sheryl broke it down for us with respect to what the markets are expecting. We’re going to probably see some hikes. Question is how many will see this year? I guess yesterday said, look, it’s already been priced into the market. That’s the volatile swings we’ve seen. What do you think?

SCOTT MARTIN: Definitely priced in. Jackie, and that’s what’s weird to me is I think the Fed does have this lead block, if you will, to use a football term, given how great the NFL’s been the last few weeks is that it has the lead block through the line of scrimmage to have a couple of rate hikes here. And they can say that, but it’s what they do afterwards. And that’s the key point. Jack in the narrative in the conference is that they’ve got to talk about how they’re going to be data dependent, not use words like transitory, which, by the way, they use the word transitory about low inflation before they used about rising inflation back in the day. But we forget about all that. The word transitory needs to be out of there, but they need to be very data dependent, but also somewhat, I guess, forthright about how the market, to my degree into our measurement has overreacted a bit to kind of the Fed’s involvement here saying that there’s going to be six interest rate hikes, maybe eight. Ridiculous predictions. The Fed just has to stay focused on the next couple of meetings and say, Look, we think inflation may be hot for a bit, but with supply chains hopefully easing with maybe the policy get the Federal Reserve being a little bit more attuned to what’s going on versus trying to say that things aren’t that bad or things aren’t really noticeable when they really were to everybody else on the street. That’s something that the Fed has to come out and be a little bit more present about things and just talk about the next couple of meetings versus going out to these wild predictions and saying, this is what we’re going to do for the rest of the year, and this is the way it’s going to be because they’ve been wrong in doing that. And that’s been stuff that’s been really hurting the market.

DEANGELIS: Yeah. And Jerome Powell definitely made some missteps, if you will. He had to walk back that transitory language, and that was really tough to swallow, even though the markets were saying that inflation wasn’t transitory for a while, Shana. But this is a two part situation, right? You’ve got the Fed, it’s got to deal with the low interest rates. It’s got to deal with pulling back some of that money printing. But then you’ve got an administration that’s also spent a lot and planning to spend more, you know, having that conversation with CEOs today saying we want to pass BBB in chunks and it’s going to help you.

SHANA SISSEL: So that’s the biggest problem, stimulus is inflationary. And so the Fed can raise rates. They can make the necessary policy decisions in an attempt to deal with the problems with inflation. But if the administration continues to spend at this level, we’re going to continue to have an inflation problem. It is about the supply chain and what is going on in China is affecting the entire world and the US in terms of the supply chain issues that are resulting in a lot of the inflation. But any sort of stimulus at this point, any sort of additional spending is going to be a headwind to any policy decisions that the Fed makes in an attempt to address inflation.

DEANGELIS: Yeah. Scott, let’s talk about the fundamentals of the market a little bit because we’re, you know, getting into earnings season here and we’re getting, you know, mixed results from from different kinds of companies, depending on how they’re dealing, navigating the challenges. Obviously, technology has been an area that’s been a little bit weak the last few days and expectations of these rate hikes to come. Your thoughts on on where companies stand right now, dealing with all of these problems? I mean, it actually feels like things are OK. On the fundamental side, they’re OK.

MARTIN: They’re not as good as maybe they were six months ago. But that’s not a bad thing because six months ago, we’re in still the V-shaped recovery. So things looked pretty in a word. Awesome. Jackie, I think as CEOs of a lot of companies out there, whether it’s Kimberly Clark, Microsoft and so forth, Schlumberger recently Corning, it’s a really tough spot right now because you’re coming out with earnings and you’re probably having a good quarter to report for Q4. But going forward, my goodness, the projections are really tough because you don’t want to over predict and overpromise and then absolutely fall flat on your face. But given the pullback and a lot of these stocks and a lot of stocks, mind you, that we own Jackie, that we still like and we’re still adding to here. Gosh, given the pullback, you kind of have a little bit of a of a chance to say, you know what? We’re a little uncertain about things going forward, so it gives you a pause or two to deliver maybe better results and expected on those subsequent quarters once those come. So the visibility is really tough. As has said, it depends on what your policy is out of D.C. and how that affects inflation. Supply chain issues, we’ve got to get these things worked out because otherwise, I think it leaves a lot of the future pretty murky when it comes to future earnings in both Q2 and Q3, which, by the way, really quick have tough comps now versus twenty twenty one coming up.

DEANGELIS: Yeah, that’s a really good point. Guys, we are going to have to leave it there. My thanks to both of you.

4:46

SVP Paul Nolte Interviewed By Money Control 5.11.21

Money Control interviews Paul Nolte, SVP & Sr. Portfolio Manager

Paul Nolte discusses strained supply lines, the timeline for rebuilding them, and what that might mean for inflation.

Click here for the full article

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