Kingsview CIO Scott Martin on Fox Business Making Money with Charles Payne 3.29.23
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Program: Making Money with Charles Payne
Station: Fox Business News
CHARLES PAYNE: In the meantime, folks, my next guest. Well, he actually remains optimistic about the market and he’s aggressively staying in this market. I want to bring in Kingsview Wealth Management CIO Scott Martin. Scott. Listen, I know you’ve been really active. I know you took some profits on names that you shared on this show. Tesla, I think, and is one of them. And you’re plowing the money into banks right now. So you must think the crisis is over or at least contained.
SCOTT MARTIN: Contained, possibly. Charles And overdone. Yes. Plowing, shoveling, hauling money into the banks. Charles, I mean, we talked a couple of weeks back, my friend. I believe it was 3/17. I think we were celebrating Saint Patrick’s Day together, actually with buying banks back then, man. And that’s worked out great. I mean, you look at the Comerica’s, the fifth third’s the Jp morgan’s, the Goldman’s Truist, those have been just absolutely destroyed. And so the common equity of those are places we put some extra cash, like you mentioned, from selling things like Tesla and Facebook this year. Google we trimmed recently, but also Charles now looking at the banks, not only at the common equity side, but some of their preferred stocks as well, which are yielding crazy par values and also amazing yields as well going forward.
PAYNE: All right. So I got the banks up here. You’ve mentioned them already, regional side, fifth, third Comerica, the Money Center banks, Goldman Sachs and JP Jp morgan. Let me let me let me ask you, Scott, is there is this a balancing thing? In other words, I would imagine the regionals are just sort of higher risk right now, or are you offsetting that with the money center banks for a little bit more, you know, a little less insurance, maybe insurance, for lack of a better word?
MARTIN: Exactly. Kind of like having a backup date in case that that one girl cancels on you. Because here’s the thing. I think you can own them across the board. But you’re right. If your risk profile for for some of our clients is a little bit say more conservative then you want to trend more towards the money center banks. But just remember you’re not going to get that upside when the banking sector recovers like you will in the regionals. Because again, I think the the the outcry or let’s say the downtrodden ness in the in the regionals is just way overdone, whether it’s commercial real estate loans that they have on the books or just the fact that everybody still is freaking out somewhat on the depositors fleeing those banks because those banks are well capitalized. Their duration outlook is fine with respect to their balance sheet. So they have a lot of things going for them that they’re not getting credit for. So you mix and match those things. But I believe on both sides of those things, whether it’s regionals or money center banks, you’re going to get a nice turnout on buying the equity there. You know.
PAYNE: Scott, recently, I think it was Monday, Citi City Research posted this great table and it had maybe like nine categories in every single category. Domino’s was better than Pizza Hut. I’m talking brand taste, quality delivery, time service, price menu, everything. And I think about that because people always urge to, you know, buy what you know, buy what you like. But in this case, you know, if you bought Domino’s and by the way, you can Pizza Hut is owned by Yum. So I would compare Domino’s to Yum. You’d be down 19% if you bought Domino’s, even though it beat them on everything. And that’s over the past year, you’d be barely break even over the last three years. Conversely, if you bought Yum! In the last year, you’d be up 6% over the last three years, up 103%. So the reason I bring this up in part because I also know that Yum! Is the parent company of Taco Bell, Isn’t there a moral to this story? Like, you know, you just can’t always go out because you might, you know, like something that’s you got to do more work. You got to it’s a good starting point. But there’s a moral to this story, right?
MARTIN: A moral to the story, man. And when you’re talking about Taco Bell, those are the morals. I mean, eat at Taco Bell. I mean, that’s that’s a morality thing. You must do that for your life. Oh, it is, though. I think you make a good point. It’s always good to buy what you know, buy what you like, but also do a little bit more research than that. I mean, a perfect example, Charles, today, Lululemon versus an Under Armour or some of these other companies that are out there, it talks about how some of these companies, whether it is a Pizza Hut or Yum! Brands, in the case of what you mentioned, or a Domino’s Papa John’s like, if you just look at how these stocks are treated in the marketplace, how they’re traded over the course of time vis a vis the space itself, you can find a lot of value there. And you may be buying a pizza chain that you don’t necessarily like, but your portfolio will like it because it’s undervalued.
PAYNE: Yeah, I got to be honest, I buy a lot of I buy stocks and a lot of companies I’m not too hot on or don’t know about, but I’m not hip like that. Anyway, Scott, thank you so much, my man. Appreciate it.