Kingsview Partners CIO Scott Martin discusses the ten year Treasury rate, a tightening Fed and the reopening of the economy.
Program: Cavuto Coast to Coast
Station: Fox Business News
NEIL CAVUTO: We are focusing on what you’ve been focusing on for the last few hours, and that is what the Federal Reserve will do and announce in about 2 hours. We’re expecting a half point hike in the overnight lending rate known as federal funds, and a lot more rate hikes to come. By the way, a half point hike would be the largest we’ve seen since 2000. Again, we’ve gotten used to quarter point moves up or down, but nothing like what we could be prepared to see. And of course, that telegraphing of still more hikes to come, some say at least another seven hikes through the remainder of the year that could send that overnight bank lending rate prohibitively higher to three, four, maybe even 5%. Let’s get the read from Scott Martin right now as investors brace for all of this. First off, Scott, what are you looking for?
SCOTT MARTIN: 50 basis points today, neil, and a projection of another 50 in june, which is so interesting because that’s what the market has kind of been telling the fed to do. And we’re here and they’re likely going to do it maybe with some more hawkish meaning a little bit more kind of tapering commentary with respect to the balance sheet and the market should take that. Okay. But it’s one of those issues where it’s been volatile this year. If you look at the benchmark ten year Treasury rate, Neil, which is really the benchmark rate to a lot of rates that we all feel with regards to mortgages and lending and things like that. I mean, it’s doubled practically this year. If you go back to the end of December, worried about 1.5% on the ten year Treasury, now close to three. So that’s a shock. And I love the term you used the verb as as I’ve used with my kids before. It may not be what you’re used to, but it is the reality. And so we have to get into this new reality of a tightening fed, of a less accommodative Fed, a less accommodative Treasury Department with respect to stimulus checks and all those things and the reopening of the economy to happen, which I think is ultimately good for the market. And why levels at these prices, these price levels here that we see in the markets today are constructive for long term investors going forward.
CAVUTO: You know, just to get back, if you think about it, Scott, to historical norms, these short term interest rates would had been around zero for most of the last decade. We’ll hit around 1% today, likely by the end of the year, maybe be upwards of 4%, maybe more than that if you anticipate seven more rate hikes, if they were to do this every every six weeks at an FOMC meeting, a Federal Open Market Committee meeting, there’s no guarantee that all of those will be tepid hikes and or that we could still see ind-ra meeting hikes. Where do you see the Fed funds rate by year end?
MARTIN: I actually see it pretty low, neil, considering some of the projections out there, i think these next two rate hikes are definitely in the bucket. But I think going forward from there, you’ve got a slowing economy, somewhat uncertain job market with respect to jobs that are actually being taken versus jobs that are available. And frankly, tough comps on CPI and PCE, which are big key inflation measures going forward come the fall, meaning year over year, comparisons in those data points are going to be tough to remain hot. So I think inflation is going to start to slow and maybe tip over a bit. So the Fed may not feel as much pressure. But to your point, I mean, one of my favorite lines in a Grateful Dead song is the first days are the hardest days. Those are going to be tough for the market to digest, as you just mentioned, with Fed funds at zero for what seems like forever and inflation nowhere. I mean, we had a deflationary environment for the last 12 years coming out of the financial crisis. We couldn’t find we couldn’t create inflation anywhere, even though we tried. And so now it feels very difficult and challenging, but the market will get used to it. The market will get accustom to a more hawkish Fed and be able to go up again.
CAVUTO: All right. Now, you were referring earlier there to a popular retail inflation number and, of course, personal consumption index number, how much people are willing to spend. And both have been on an upward trajectory here. But there is a fear here that when all is said and done, we close out the year, despite what you’re saying, closer to a four or 5% overnight bank lending rate, which would be closer to what is the mean or the norm. But you seem to be arguing that the Fed will sort of pull that back a little bit, that it’s overdone. It you might be very right. And there are others who share that view. But if it’s interpreted as the Fed losing sort of its nerve to to address this, wouldn’t the markets revolt at that?
MARTIN: They would, and they have to some degree. I mean, the Fed took a while to get the first rate hike in. Right. And the market kept pushing it that way. And eventually we felt some pain and the Fed did it. So I think, Neil, though, we have to look at kind of the mantra in the behavior of this Fed over the last several years and throw out some of the recent talk, because I think they had to give the market some of that hawkish higher interest rate talk. But this is a Fed that at least last time I checked, I mean, looking over their their body of work, as it were, they don’t want to crash the markets. They don’t want to crash the economy. They don’t want to over tighten. And we have a midterm election coming up that is fraught with all kind of geopolitical issues as it is now, even in the recent days, as we’ve seen with Roe v Wade, I don’t think this is a Fed that wants to get involved in having, say, this hanging on their hats with respect to crushing the economy going into November.
CAVUTO: Either I remember a guy named Paul Volcker who didn’t worry about stuff like that. He just did what he had to do. Do I sound like.
MARTIN: He’s a real.
CAVUTO: Man? Yeah, I do. I’m the angry old man. Scott, hang in there, my friend. I do want to get your thoughts on China a little bit later in the show because some interesting developments there to follow that aren’t quite what you think.
Kingsview CIO Scott Martin discusses refiguring business models, taking buying opportunities and layering into names you feel are fundamentally strong.
Program: Making Money with Charles Payne
Station: Fox Business News
CHARLES PAYNE: All right, folks, we’re now hitting the lows of the session as this news of a potential Russian invasion next week continues to hammer the stock market, by the way. Bond yields are also going down. The dollar is going up. There’s a serious flight to safety here. I’m going to bring in Rob Luna and Scott Martin Scott. Let me start with you. You know, the main thing that that I’m seeing here is that we kind of thought this was going to happen. At least I could speak for myself and many others. Is it just because the timing or just the realization? Why this reaction right
SCOTT MARTIN: Could be the timing? Yeah. Charles, I agree with you could be the timing could be the fact as we saw the Super Bowl kind of preview there. Maybe people are just taking off for the rest of Friday. And so it’s a thin trade and it’s easy to push the market around because I don’t get it either man. I mean, that’s where the market’s been, though in the last, say, three to four weeks, Charles. This is stuff we already know. I we knew the Fed was going to hike rates this year. We knew inflation was going to be a problem. We knew there was going to be fiscal contraction. So what’s the deal? So I think the basic takeaway, if you’re an at home investor or if we’re investing in our portfolios as we are every day, all day take, these is buying opportunities. I’m not saying it’s today per se, but my goodness, if this continues Monday or Tuesday, look at AMD and Nvidia for two names. Those are great buys right here in great base price, probably Monday or Tuesday as well.
PAYNE: And Rob, that is the big wild card here, right? How do you quantify something like this, an exaggerated event that’s out of our control that we probably thought was going to happen anyway? You certainly don’t want to be an aggressive buyer, perhaps today, but at some point next week, when there’s all of this, get baked into the cake. When is a 50 basis point hike? Get baked into the cake when there’s a Russian invasion of Ukraine, get baked in the cake because the Scott’s point. We kind of saw all of this coming anyway.
ROB LUNA: Yeah, and I completely agree, Charles, that both you and Scott and look, I think at the end of the day, I think we’ve known this for a while. The Fed is really chasing the team. Bond yields, I think are moving and have moved to a place above over two percent where they’re already factoring that into the market. I think the market, if you take a look at it, especially some of the laggards like technology, they’ve really been trying to hold up here as well, though. But to Scott’s point, look, it’s a Friday who wants to be long going into the weekend. We don’t know exactly the extent of what’s going to happen with Russia and Ukraine. Now we’re talking about potentially 75 basis points, which I don’t think will be happening. But look, there’s a lot of jitteriness out there and just the feel of the market right now. It’s not that all, you know, risk on bull market that we’ve been in for a while that everyone’s gotten used to.
PAYNE: No. Yeah. Well, we anybody was used to it today and they have been paying attention for the last four or five weeks. And of course, you both alluded to the Super Bowl on Sunday. I guess the biggest storyline other than Tom Brady not being there is all the betting, right? The biggest wager, according to the Babylon B, President Biden is going to double down double nothing our national debt, placing 30 trillion dollars on the Bengals. All right, folks, I’m just joking before you start to get out my Twitter. That’s a parody out, but seven almost $8 billion being bet on the Super Bowl in New York to open their betting up. Let me ask you, Scott. I mean, what the heck is going on? How can these stocks like DraftKings and others? That was a $74 stock. That it’s like twenty four bucks. How come they don’t move on this news?
MARTIN: It’s kind of odd. Now, quick comment on that, Charles. I would much rather have Biden put that money on the Bengals, for example, than put it in the hands of Congress to figure it out because that has not worked. So I’m taking I’m long, Joe, but I mean, you know, Rob mentioned long going on the weekend. One thing I’m I’m wrong is Joe Burrow in the Bengals and I’m from Ohio, too, so that’s maybe a personal story. The other point, though, you’re right, man. I think the one issue at DraftKings, though just real quick, is that they had this huge spend on getting new clients and kind of the marketing side of things when people are like, they like gambling people who like to gamble, gamble, and there’s a lot of folks out there that will come to DraftKings over time. So I think some of the business models, some of the planning needs to be re figured when it comes to how much the cost per client acquisition cost is,
PAYNE: you know, up until about an hour ago, Rob. DraftKings, it’s still up a little bit, but a lot of these really. I’m talking names that have been smoked have been doing well enough. There’s a stealth rebound there and the Russell was up. And so but here’s the problem one third of those companies are unprofitable. Do you go in there, though? Is have things gotten so bad that you go in there? Is there anything in there that you would be looking at to buy?
LUNA: Yet traditionally, you know, I would kind of agree with Scott, and I’d be trying to maybe dumpster diving to some of these in a name like DraftKings, but look, we’ve got high quality that’s also down 40 and 50 percent names like Airbnb and Vida getting beaten up. So I think right now there’s enough out there that I’d rather put my money into. And look, I think Covid’s coming towards an end. I was just in Vegas, Wynn’s booming. I don’t think you have to play the DraftKings. There’s some really good deals out there. Put your money into some of those. I’d stay away, particularly from this sector right now.
PAYNE: So what’s the worst case, Scott? The worst case scenario here? Because, you know, we can’t. We’re all kind of an agreement with respect to we have to be getting there. A lot of the worst cases. It’s got to be being built into this market. But we were extremely valued, you know, had high valuations and a macroeconomics are also changing.
MARTIN: OK. Yeah, they are, Charles, I thought you were talking about the worst case just for the world, what should be Paris Hilton putting out another music album? But here’s the thing. She was for the markets with
PAYNE: good video from the from the girl with the bitcoin. You know, you got to. That’s what I was thinking about.
MARTIN: I mean, anything like that is probably the worst thing to happen to the consumer since the Fed would start raising interest rates here in March. But here’s the weird thing really quickly the markets are just to Rob’s point in a weird mood. You’ve got to take some of the down days with the good days and just keep some cash handy and layer into names like Rob said that are fundamentally strong that you believe in long term, but don’t look for those short term games right away because you may not get them exactly say on a Monday or Tuesday.
PAYNE: Guys, you got to leave it there. Good luck to the Bengals. Rob Scott, thank you both very much.
Kingsview SVP Paul Nolte discusses the shift to value away from growth and to other parts of the market.
Kingsview SVP Paul Nolte discusses a shift away from technology and the definition of good value in the markets. He also talks about a possible Fed taper and what that might mean for interest rates.
Click here to watch the video.
Kingsview Partners SVP Paul Nolte joins Bob Sirott to talk about the down month for the market in January, the markets finding their footing so far in February and why the Fed believing “transitory” inflation was a swing and a miss. They also discuss the impact supply chain has had on the economy, what we can expect from Friday’s labor report, and how the markets will react to the Federal Reserve raising interest rates.
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
Station: Fox Business News
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.
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
Station: Fox Business News
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.
Kingsview CIO Scott Martin discusses consumer confidence, and whether the public is interested in buying goods and services. He also talks about how investors tend to forget about the ups and downs of the markets when things have been very strong over a long period of time.
Program: Cavuto Coast to Coast
Station: Fox Business News
NEIL CAVUTO: Let’s go to Scott Martin, another gentleman for whom money is no object, and taking a look at these developments, it is interesting in the middle of a pandemic, no less right that people will spend on the money and the money for the things they really want and apparently fancy. Schmancy car is what they wanted, right?
SCOTT MARTIN: It is, Neil, and that’s a sign of a pretty good economy, frankly. I mean, that’s a sign of a strong consumer, a consumer that wants to go after things that they desire. I mean, Neil, you and I can remember some, some bad times in the economy, some difficult recessions where you didn’t want to buy anything, let alone maybe food or gasoline. So it goes to show you that that this consumer, even though, yes, there are some fits and starts to this recovery, this consumer is at the core, relatively confident and relatively aware of what they want to do with their money when they have it. And that is to buy goods and services.
CAVUTO: Scott, what has been going on with the markets this second week now of the new year, where we’ve lost a lot of ground and technology stocks. We’ve seen the Nasdaq come close to correction nine percent. Others within the S&P 500 are well into correction territory or worse, so the churn beneath the surface is real. Is this the year at all? Slows down? Reverses what?
MARTIN: This is the year it may feel like it’s all going to reverse, but I don’t believe it is, Neil, and this is a cable show, but let’s still keep it relatively clean for our young viewers. I think as investors, Neil and certainly as money managers, we forget that the markets do this. We’ve had a really easy slide the last couple of years, aside from, say, March of 2020 and into April. I mean, things have been relatively calm and we’ve had a lot of support from the Federal Reserve. We’ve certainly had a lot of support from D.C. and the Treasury Department. Some of that support is changing now. Yes, some of that is rolling over to the aforementioned consumer, as we discussed and
businesses as well as they get back online and hopefully get the workers back in place also. So there’s that handoff now happening to companies that are going to make earnings and consumers that are going to spend. So that’s not an easy hand off sometimes, certainly when it’s coming from, where we’ve been to where we are now. So in our opinion, I think the market still likely goes up from here. It’s just it’s likely that a lot of these stocks you mentioned in tech land, whether it’s the Docusigns of the world, the Zooms, the Costcos, the Home Depots, the Adobe’s the apples, the Amazons, I could go on and on the Microsofts, they’re all over the place. A lot of those companies, Neil probably got too far, too fast. And so they’re likely to come back in some the markets going to shoot first and ask questions later. So they’re going to get oversold just like they got overbought. But that’s as a long term investor, a great opportunity for us as money managers to go out and buy these names at depressed prices for the long term.
CAVUTO: You know, it’s very hard after three double digit advances in the averages for three straight years to think it can happen for a fourth year. But we had seen strength continue. Maybe not to that degree. What are you looking for this year? It’s very early. I grant you and there are a lot of variables I grant you that as well.
MARTIN: We’re looking for companies to match or beat earnings reports, and really that’s I think the stress point here that a lot of folks are kind of trying to handicap ahead of really the data that’s likely to come out in the next couple of quarters. And by that, I mean, we’re starting to come into these earnings seasons now mainly more towards Q3 and Q4 of the upcoming year here, where companies are going to have to compare year over year results against results that are pretty darn good, say, back in twenty twenty. So the reality is in twenty twenty one, certainly as we saw last year. So the reality is companies are going to have to do better. They’re going to have to do better. Maybe with less. We’re going to have to get a lot out of worker productivity going forward, which is certainly a head scratcher now seeing how the labor market is behaving. So companies, as they deliver these results, as we start to get, say, Q4 earnings coming out in the next couple of weeks, it just starts the earnings season here very soon. And then we go into subsequent quarters after that. Companies are really going to have to get innovative. They’re going to have to get creative on their bottom lines to show that they’re worthy of the prices that they’re trading at. But the market ahead of time is already knocking a lot of these companies down in price. So therefore, in our opinion, they’re already getting down to reasonable levels levels where they’re appropriate for investment entry.
CAVUTO: All right. We’ll see what happens. Catching up with you, Scott Scott Martin, the Kingsview Asset Management CIO.