Kingsview CIO Scott Martin On Fox Business News – Making Money with Charles Payne 4.11.24
Click here to listen to the full interview.
CHERYL CASONE: Oh well, bond yields, igniting angst on Wall Street and in the White House. Taking a look right now at the 10 year climbing higher. As investors continue to digest, these tariff developments we’re above five basis points. Once again, the yield is at 4.483%. The moves and the bond market really were the bigger story this week in particular as the trade war, if you will. Kicked off with China. I want to bring in Kingsview wealth Management, chief Investment Officer, Scott Martin. Scott, what is your take on not just what the action we’ve seen in the bond market, but also the message that that sends, we keep asking this question over and over, Scott, was this the Chinese, was this the Japanese who was doing the selling and why? And it’s hard to kind of trace that, but we still have to kind of ask ourselves what happened this week and the bond market.
SCOTT MARTIN: Cheryl, I’ll tell you, the bond market is telling a lot of things, isn’t it? And who is selling what? We’ll find out later. We’ll find out soon when we get some of the reports in. And it was a domestic too, Cheryl. I mean, could it be some hedge funds or some other investors that are getting out of positions that are liquid. By the way, that may be illiquid other places with regards to other positions they have. I wouldn’t use the word beautiful when it comes to the bond market as President Trump has said. I wouldn’t say it’s ugly either, but it is volatile. And that’s something, Cheryl, that if you look at times like these where there’s a rush liquidity, a rush to the door, as we saw in the stock market, especially last week, the bond market usually is the stabilizing factor. It has not been so, and even today it’s been kind of all over the map. So this is very kind of, it’s a little scary when it comes to the fact that not only your equity kind of dangerous these days, bonds appear to be as well.
CHERYL CASONE: Right, no, certainly. And that I’m saying that was a big spook moment, if you will. I’ve been going through in particular what we heard from JP Morgan today because we kicked off earning season with the banks. And I want to get your thoughts about the results, but also what you heard on the conference calls in particular when I was going through the comments from JP Morgan’s, CEO, but more importantly the CFO, you definitely saw more commentary from both of them about the concern when it comes to the consumer and if any bank is going to have their eye on the consumer and the credit card accounts and the auto loans and the mortgages, it’s going to be JP Morgan, what did you think?
SCOTT MARTIN: For sure, and we’ve seen a lot of interesting dichotomy over the years, especially in the last couple of years, between JP Morgan’s commentary and Bank of America with Brian Mohan and his counterparts with regards to the concern, or maybe they’re not concern over consumers. So Cheryl, I think some of that concern is well founded, but JP Morgan has basically been managing their books a little bit more conservative lately, which I think is good, especially for entering a time like this. And they also talked about business loads on there too, possibly drying up, maybe being at a little bit lower demand with respect to the business outlooks that we’re seeing. Here’s the thing though. JP Morgan posted great numbers. They had some good trading numbers as well, because all the volatility. The problem is if you want to talk about earnings being backward looking, Cheryl, there’s the evidence of backward looking going forward is something that is going to be difficult for any bank to report on, but it’s nice to see that we had good earnings at least coming into this period.
CHERYL CASONE: Well, but again, that’s where the commentary and I mean we did get a little bit of guidance from JP Morgan, at least on the fiscal year 2025 outlook. Real quick, we’ve only got a minute left here, but you say move over big tech, you’re looking at small tech. Talk to me about what you see.
SCOTT MARTIN: Yeah, so if you look at things like we have up on the board there, Spotify, Roku, Shopify, I mean these are names Cheryl that we know well and we’ve talked about ’em over the years that have had amazing runs and then also had amazing crashes. But these are companies that have come down to levels that are just absolutely, I think as screaming buys, if you have that two to three year outlook, because these are selloffs that get overdone. The market runs to liquidity, they run to bigger companies. And so the small guys get left behind. They get trashed. They get smashed. That’s when you got to pick ’em up if you’re a long-term investor.
CHERYL CASONE: Alright, Scott, well certainly we know we have had a lot of conversations this week about if you’re looking for a specific stock and you want to buy it, maybe this is the time we shall see how it plays out. Scott Martin, thank you so much.
SCOTT MARTIN: See you.
