Kingsview CIO Scott Martin On Fox Business News – Making Money with Charles Payne 7.23.24
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CHARLES PAYNE: Alright, folks. My next guest says that economics is taking a backseat to front-page news, which has been an absolute whirlwind. So let’s bring in Kingsview Wealth Management’s Chief Investment Officer and Fox Business contributor, Scott Martin. Scott, we are in this perpetual breaking news mode, and it’s real breaking news, not just saying it. The news is really breaking at breakneck speed, and it’s moving markets. How do you, as a professional, deal with this? Because I can tell you right now, most of our viewers are grappling with it.
SCOTT MARTIN: Yes, it is breaking news, Charles. It’s breaking me as a human, as is my earpiece, as you can tell. So bear with me. But Charles, look, the way to deal with it as a human and as an investor is to take advantage of the market when it goes a little crazy because of the news we’re receiving. You mentioned in your lead-in that economic data is getting slower and less impressive, and the Federal Reserve is still hanging out there as the man behind the curtain when it comes to rate cuts. This time around, you can still take advantage of overreactions in the marketplace to news that’s on the front page because investors are emotional. They will overstate some of their positions and understate some of their selling and buying. You have to take advantage of those conditions when they occur.
CHARLES PAYNE: Here’s the thing, though. This has been an emotionally driven market all year long, more so than any I’ve seen in a long time. Trying to go against it has been a losing proposition. If you say, “Oh, the crowds are chasing the Magnificent Seven,” and you shorted them, you lost big time. So do you take advantage by joining the crowd and understanding, “Hey, I’m not going to drink the Kool-Aid, but I want to ride the wave,” or do you wait for a particular time when something is either overbought or oversold and then make your move?
SCOTT MARTIN: Yeah, well, what we do for our clients is a little bit of both. We definitely join the crowds because, Charles, we could be in the third, fourth, or fifth inning of the ball game. Certainly, drinking the Kool-Aid is one thing, but when people are bathing in the Kool-Aid and using it to take showers, when everybody’s talking about the Magnificent Seven, that tells you we’re probably getting to the point where it’s too easy. Investing is not an easy game long-term; when everybody knows the answers and the best stocks, it’s time to start backing off and taking profits. When that happens, you have to look at stocks that are really downtrodden and beaten up—names I never thought I’d want to own but have to own because they’re so undervalued.
CHARLES PAYNE: The Richmond Fed came out today with another disaster, and it’s been a series of disasters. You believe the Fed has been keeping an even keel on all of this. There’s going to be a moment, though, where Jay Powell and company will have to make a decision, right? I mean, putting it off, putting it off. What would you like to see in terms of rate cuts this year?
SCOTT MARTIN: Zero. I’ll tell you why. The Fed needs to get off the front page because other things are replacing them, as you noted earlier. When you look at the market and see when stocks and bonds perform best, it’s when the Fed is out of the game. When the Fed is just doing their work behind the scenes—watching the banks, watching money market flows, watching debt—those are times when the marketplace can perform best. I think the Fed has done a good job of quelling the notion of rate cuts while keeping an eye on the data. This allows them to hang out in the background and still be there if there’s a problem. However, hinging too much on a rate cut by the end of the year could be disappointing.
CHARLES PAYNE: Only 20 seconds, Scott. Just share with us those names. You talk about these quality names that are oversold.
SCOTT MARTIN: I don’t know if I’d call these quality. They make me sick to my stomach, Charles, but Starbucks is one name that’s really gotten beaten up and looks attractive on the chart level. United Airlines—I didn’t think I’d ever say this again—is beat up and starting to pick up its game. I like where United is in the overall scheme of the airlines. And our old favorite, Charles, we’ve talked about this: Costco. It just got smacked a little bit in the last couple of weeks, but it’s turning around again, and it cannot be beat as a category killer.
CHARLES PAYNE: I just don’t think I’ll ever buy another airline stock. I really don’t. Scott, my man, thank you very much, buddy. Let’s talk again soon.
