Kingsview CIO Scott Martin on Fox Business: Making Money with Charles Payne 4.17.23
Program: Making Money with Charles Payne
Station: Fox Business News
CHARLES PAYNE: So last week, folks, the banks crushed it, but it was the big banks. Then on top of that, we learned after the close that commercial bank loans actually increased right after a major swoon. So it made a lot of people feel pretty good. Of course, that’s as we head into this week where we get the regional banks and well, it just might prove that these are the best of times and the worst of times for the banking sector. I want to bring in Kingsview Wealth Management CIO Scott Martin. And Scott, you know, this morning State Street posted results came up a little bit short. The stock has been getting hammered. You’ve been buying bank stocks for the last few weeks. Your feelings on these regionals, I mean, it certainly doesn’t feel like they’re going to all hold up.
SCOTT MARTIN: Yeah, that’s the tough thing. Charles It’s going to be a little bit of a minefield, but if you do your research, do your work, as Gary just talked about, I think you can find the good ones. We’ve talked about them on your show already, my friend, which is Fifth Third and Comerica, are the two that we like in the regional space PNC to some degree as well. I mean, looking at the balance sheets, income statements there, I think they look pretty safe from what we know right now, Charles. But you’re right. I think a lot of investors, a lot of our clients have talked to us about buying, say, the KCB or the KRE, which is the ETF of the regional banks still. Okay. But you’re going to limit your upside to there. So I like going into the individual banks too, if you want some more risk, but obviously some more reward.
PAYNE: I love that, by the way. That’s my approach to the entire market. Right? Find a great name so you’re not holding the crappy names. So you kind of mentioned your your methodology here trying to understand how you’re distinguishing the regionals that can survive in this in this environment where, let’s face it, the big banks. We have the treasury secretary telling folks, hey, put your money in a big bank. And if they don’t listen to that, they’re going to certainly look at these money market funds. So how do you what are you using to distinguish, you know, the Fifth Third’s of the world?
MARTIN: Well, I mean, here’s the thing. It’s basically looking at the return that you’re expecting to get. You’re right about the big banks. They are safer. So you look at the Goldman’s, the JP’s, we own those as well. We bought those on the downturn. But the upside is somewhat capped because as you saw last week, we had a nice boost in Jp morgan, especially on Friday. But I think they’re kind of going to be topping out soon. So for us, just looking at, say, a targeted return on the regionals looks a little bit more attractive. And you’re right. You know, that’s the tough thing, too, is you’ve got a couple other players in this game, Charles. You’ve got the Fed and you’ve got Treasury Secretary Janet Yellen, who seems to be saying something different every day when it comes to the regional banks. So there’s those things at play, too, man. But if you just look at where the fear was about a month ago and where it is today, where those stocks are as far as fifth, third PNC and say even, you know, some of the other regionals in that space, those companies are still way down. They’re still way off the prices they were just about 60 days ago. And I think that presents opportunity.
PAYNE: Hey, let me ask you about this hard landing, soft landing debate. Where do you do you think the Fed can engineer a soft landing? Do they even want to engineer a soft landing?
MARTIN: That’s the question. Does the Fed want to help itself here and look good coming out of this, which would be no rate hikes next month, Charles? But here’s the thing. I think it’s going to be hard and soft, meaning it’s going to feel hard at first and it’s going to come out pretty soft because the economy is stronger than people think.
PAYNE: All right. I got one more one more question for you, since you’re our food fast food expert. Just wanted to kind of get your thoughts on something. I read The return of the Hamburglar after eight year hiatus. I mean, this has got to thrill you. I mean, I’m pumped. When I saw that, I’m like, okay, my man is back.
MARTIN: Love that guy. He’s an instigator. He seems like he’s always up to no good or causing some sort of trouble. But, you know, he’s not totally evil. I think some of these other restaurants, Charles, you know, you’re referencing obviously my habitual eating habits at say, at say Taco Bell. But I’m looking at Burger King and other, say, fast food chains to see what they got going on in their menus and their prices. But it might be something some of these other restaurants want to do. And then maybe we have a food fight amongst all these kind of evil, evil players. Eventually, one of these days.
PAYNE: The bottom line, too, is McDonald’s has been an unmitigated juggernaut. Hey, Scott, thank you so much. You look great. For someone who can eat $27 worth of Taco Bell in a single sitting. All right.
MARTIN: I work out five times a day. See you, buddy.