Kingsview CIO Scott Martin On Fox Business News – Making Money with Charles Payne 12.13.24
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CHARLES PAYNE: Well, my next guest says, don’t take your eyes off the Fed, folks. That’s right. Between now and the end of the year, they will matter in ways you might not even appreciate yet. Let’s bring in Kingsview Wealth Management’s Chief Investment Officer, also Fox Business contributor, Scott Martin. So, I mean, here’s the thing. I saw your note, and I’m thinking everybody’s on board that it’s going to be a 25-basis-point cut. What are we concerned about here?
SCOTT MARTIN: Everything. The fact that, like Stephanie talked about previously—Stephanie Pomboy in the last segment—Charles, the Fed is going against the economic grain, going against the grain of what they said their grain was going to be for the first, say, three years of their rate hiking—or two years. I mean, it’s like all of a sudden they’ve forgotten what they were talking about just a few months ago because inflation is not tamed; it’s actually going to rise again, and the economy is fine. In fact, it’s a lot better than what I think people give it credit for. So why are we taking that stimulus, which is so akin to a difficult position for the economy—something we might need so badly sometime down the road—and blowing it on a good economic situation like we have right now, with the stock market at all-time highs or near there?
CHARLES PAYNE: So then let me pick up on that—the question of why and what do you think? Because, no, really, honestly, I sometimes… listen, Jay Powell is human, right? He goes to Grateful Dead concerts, right?
SCOTT MARTIN: I like that. Me too.
CHARLES PAYNE: Jay Powell—yeah, I’m saying he’s a human being, right? We look at the Fed as if it’s like a robot, right? These folks who know everything—and they don’t. Obviously, they don’t, right? They misjudged a lot of things. I do wonder, to your point, if emotions or his place in history are sort of influencing his decision-making. I know a lot of folks push back on that notion, but he is a human being, and I think he’s gotten caught up in his place in history, and it might be hurting their decision-making.
SCOTT MARTIN: What an amazing question, Charles. That’s why you’re the best in the business. I agree. I mean, he is human, so we make mistakes inherently. Jay Powell is hitting us all kind of in the face with some Jay Powell kind of rhetoric, which—you’re right—it changes because of the humanity of him and his Fed governors. And he goes to Grateful Dead concerts. I would love to go to a Phish show with him—maybe a Goose show—because it’s where you kind of learn and get experiences, whatever they may be. And he has about going through things, and you’re right, there’s no doubt the Fed has done the best work they can as far as what they thought was best at the time. But Charles, if you’re a data guy like me, if you look at where the data is right now, you get that feel. I mean, people are going to travel a lot for Christmas, Hanukkah, New Year’s—whatever. Does this economy need rate cuts? Does it need 100 basis points if we get another 25 in December? Rate cuts like that, to me, are going to be crazy inflationary.
Oh, by the way, Jay Powell, you want to talk about a swan song or an encore? This guy’s out in what—a matter of months or quarters? So it’s kind of like, “What’s the way to get out of here? What’s the encore song?”
CHARLES PAYNE: Hey, last time we spoke, you expressed some concerns about the market maybe coming too far, too fast. How do you feel about it now?
SCOTT MARTIN: Some stocks—yeah, definitely way too far, too fast. But Charles, as we talked about last time, we found some really good diamonds in the rough. I think Lululemon was one that we talked about, which blew up after that. I mean, I was wearing, I think, Lululemon when we talked on the show itself, and so therefore I was talking what I preach—or what I wear. And so you just got to find stocks that are still hanging out kind of low there. I mean, one of them that we like here is Canada Goose.
Canada Goose—not the animal,
CHARLES PAYNE: Yeah.
SCOTT MARTIN: The coat.
CHARLES PAYNE: Yeah.
SCOTT MARTIN: How cold it’s been in Chicago lately. Man, you want to wear anything you can. Even Canada Goose is getting worn. That stock’s almost under 10 bucks these days—$9.90, as we see, Charles. That thing can come back to 15 in a snap. Those are places I’m going because some of that stuff out there, as you mentioned, is overvalued, and there’s an air pocket in there somewhere.
CHARLES PAYNE: It’s so funny, man. I got crushed so bad in Canada Goose, man. I mean, when the name popped up just now, I got goosebumps, man. I mean, I got PTSD. I lost people so much money.
SCOTT MARTIN: You give me goosebumps.
CHARLES PAYNE: Even if it came back a gazillion percent, we wouldn’t be breaking even. But I do—well, ride the next 40% with me, man.
SCOTT MARTIN: Yeah.
CHARLES PAYNE: Hey, Scott, have a great weekend, my man.
SCOTT MARTIN: Alright, enjoy, buddy.
