Kingsview CIO Scott Martin On Fox Business News – The Big Money Show 8.8.24
Click here to listen to the full interview.
TAYLOR RIGGS: I also want to quickly take a look at some of these big tech names. You guys, the NASDAQ was in correction territory, but it seems to be rebounding today. Most of the companies within the “Magnificent Seven” are green on the screen, and I’m pleased to say that we have Kingsview Wealth Management CIO and Fox News contributor Scott Martin with us today. Scott, what do you make of Morgan Stanley’s comment about the “Magnificent Seven”—that if we’re in a correction and there’s no recession, this is a good buying opportunity? Do you agree?
SCOTT MARTIN: I love the comment, “if there’s no recession,” which I think they’ve been predicting—random people have been calling for a recession in the markets for what, two years now, Taylor? So sure, if there’s no recession, stocks are going to do great. How about that analysis? Look, I think recession fears are typically overblown, as usual. When everyone expects a recession—including my grandmother, my mom and dad, and everybody—that’s usually the recession that never comes. I believe that the more we hear about this fear, the more we hear about people getting out of the markets, the Yen carry trade unwinding, and geopolitical issues affecting the stock market, the more I think, Taylor, that this is a buying opportunity for some of these stocks. You pointed out in the intro that stocks like Intel, CrowdStrike, Delta, Nvidia, and Eli Lilly are all rebounding significantly because some of the weaker hands sold off on Monday and Tuesday, and now the stronger hands are stepping in. That’s where our cash is going as well.
JACKIE DEANGELIS: So, Scott, does this selloff we saw have to do with the fact that stocks were just soaring day after day and needed to pull back? Did investors understand that and want to take profits? Or are there more underlying fears at work here, like fears of a recession? Jamie Dimon says the chances of a recession are the same as they were before, about 40%. What do you think?
SCOTT MARTIN: So it’s a coin flip, I guess, and I call him Jamie “Dimmy” too because it’s kind of a dim analysis. I mean, this guy can be a bit of an alarmist at times. You have Jamie Dimon talking about tempests in teapots and all those things. Back in the day, he was predicting all these recessions and problems with the banks—not at JP Morgan, of course, but at other banks on the street—and those never happened either. So I believe the more we hear Jamie Dimon say that bad things are ahead, the more confident I am that they’re not. And the more we hear other analysts, whether it’s Morgan Stanley or other big banks on Wall Street, say, “Okay, we’re hunkering down, we’re not going to lend money,” and so forth, and risk appetite is drying up, that’s when you need to get into the market. These weak hands fell out on Monday morning when there was a little bit of volatility, and folks got nervous and exited the market, missing out on the gains over the last three days.
BRIAN BRENBERG: Alright, Scott. You mentioned weak hands—some folks out there, maybe even some in our audience, got a little nervous on Monday. They might get nervous again in the coming days if we get bad economic data. What’s your advice to them?
SCOTT MARTIN: Nervousness is part of investing, isn’t it, Brian? And I don’t mean to use “weak hands” as a negative term. It’s something that is part of investing. I got a little nervous on Monday too, but you’ve got to take those emotions and use them to your advantage because usually, those emotions are reactions, not preparation. So, frankly, if you got out of the market on Monday because of what happened—Bitcoin was down about 20% at the market open on Monday, and we were buying for our clients because that was a crazy reaction, with people flipping out and throwing the baby, the bathwater, and the bathtub out. My point is, if you’re in the markets and you get volatility like we had on Monday, where everyone was talking about the sky falling again, which we’ve heard over and over in the last few years since COVID started, you probably shouldn’t be in stocks anyway and should consider being more conservative because these days are going to come again. I promise you that.
TAYLOR RIGGS: Well, Scott Martin, it’s always great to have you on days like today. If you stayed in the market, you were able to catch the last few days of this rally. Thank you so much. We appreciate it. See you next time.
BRIAN BRENBERG: He’s kind of an eternal optimist because he’s a Vikings fan anyway. You’ve got to be that way, right?
TAYLOR RIGGS: Don’t mess with my Niners!
JACKIE DEANGELIS: He knows that. He knows that. Good stuff, Scott. Alright.
