CIO Scott Martin Interview on Fox Business Making Money with Charles Payne 12.30.22
Kingsview CIO Scott Martin discusses Tesla and Southwest stocks and public sentiment on a recession.
Program: Making Money with Charles Payne
Station: Fox Business News
LAUREN SIMONETTI: Many investors down and out this year. The big sell off on the final day of trading. But our next guest sees a silver lining. And that’s a good buying opportunity because things got 20% cheaper in general this year. Joining us now is Kingsview, Wealth Management Chief investment Officer Scott Martin. I haven’t seen him in a while, Scott.
SCOTT MARTIN: I don’t think I’ve seen you ever, Lauren. So thank you. Maybe the first time so low.
SIMONETTI: You’re right.
MARTIN: But and I’m the king of silver lining, so let let’s put that disclaimer ahead. But to your point, this silver lining is that much brighter because of the downdraft that you’ve been talking about all show.
SIMONETTI: Are stocks cheap enough? Or are we going to wait a couple of months, get to the second quarter or maybe the third quarters of 2023 and then buy?
MARTIN: Great question. You know, cheap is in the eye of the beholder almost, isn’t it? Right. I mean, it’s like how long is your time horizon if you’re looking out to three years? Yes, stocks are cheap enough. If you’re looking out a year, you could probably wait a little longer. But let’s take a lesson Lauren has been talking about a lot this hour of previous history, and that might be redundant, but let’s just still go with it. Meaning that, like history tells us that markets do get overly cheap, they extend too high and they extend too low. And so this one probably is cheap and likely to get cheaper, but just buy on the way down because I’m telling you, in one, two, three, four years, even if the economy doesn’t recover as fast as we all think it will, let’s say in the next 6 to 12 months, it will preempt and pre run the Fed weakening, meaning the Fed lowering interest rates and the economy getting better.
SIMONETTI: You I’m quoting you, you’re buying garbage today and you cite Tesla and Southwest.
MARTIN: Yes. To stocks to say it nicely because there’s probably children watching have been in the garbage and similar to and just let’s put it in the garbage still similar to where the stock is today. I mean, a lot of those stocks are still suffering through, you know, southwest coming out of this crisis that they had over the weekend. Of course, Tesla with the Twitter issues. It’s just like anything, Lauren, when things get overextended to the downside, emotions go out the window. A lot of folks, we can sell these stocks and dump them for other things. That’s when I want to get in, when everybody’s out and done selling and exhausted, I want to come in and buy.
SIMONETTI: All right. Well, Tesla is at oh, shoot, I don’t have the number in front of me right now. Anyway, I’m stealing this from Jim Bianco. I didn’t get it in his segment, and I’d like to get it up with you if we can pull up the chart. It’s Philly Fed data and it shows that right now, 43.5% of people expect a recession in the next four quarters. That’s like the highest ever.
SIMONETTI: Yeah, exactly. Is it when everyone else is going in one way, shouldn’t you move in the other direction?
MARTIN: 100%. I mean, look, look at the chart like you just put up. And Tesla is like up 121 bucks these days. 400 a few a few months ago. I mean, it’s ridiculous. And if this, if this recession happens, if this market downturn happens, if this inflation still continues to go crazy, happens. It’s the most telegraphed future in the history of the United States and the world. I mean, everybody saw this coming. It doesn’t happen like that to your point about that recessionary data. So my guess is people miss the turnaround. They missed the recovery and start chasing it and that’s when you want to start getting out. But there is a whole lot of fun to have on that period of time when that’s starting to occur.
SIMONETTI: Can you say stock prices really quick? Like if I said Microsoft, would you be able to give me the exact number, the exact quote?
MARTIN: I could guess 50. That’s what I wanted that, though. You know, it’s a good point. A lot of these stock prices, though, Lauren, get the levels. I know that’s where I wanted to buy a long time ago.
MARTIN: There you go. See, let’s take the middle, though. See, there are areas, though, that stock prices will get to which will look crazy. And that’s when you have to really just hold your nose and buy when you have to go. It’s just like betting on, say, like NFL games, when you have to bet on the team that looks the worst, like my Minnesota Vikings. Those are the ones that work out because those are the ones that nobody wants. Those are the easy pickings, I’m telling you.
SIMONETTI: All right, Scott, I should say, have a terrible new year and then maybe you’ll.
MARTIN: Have a good day. That means it’ll be great.
SIMONETTI: Happy New Year, then.
MARTIN: Sad New Year. See you.
SIMONETTI: Sad New Year. Thank you.