Kingsview CIO Scott Martin On Fox Business The Big Money Show 4.11.2024
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BRIAN BRENBERG: Joining us now, Kingsview Wealth Management, CIO, and Fox News contributors, Scott Martin. Scott, really good to see you. I got to ask you about Larry Summers the former Treasury Secretary. I think he might be in the camp you’ve been in. He’s now saying forget about rate cuts. You might see a rate increase in June of this year. Are you there yet?
SCOTT MARTIN: I’m not there yet. As we always ask our parents, back in the day, Brian, as we were driving to Minnesota where my mom’s from by the way, and saw Vikings games, hello. And forget about the Vikings now because that’s a painful memory. Just like some of the stuff though that Larry Summers is talking about, which is a painful memory of higher rate hikes. Brian, I’m not quite there with the rate hikes and Hey Larry, welcome to the camp of realizing that the Fed is not going to do anything this year, guys, I don’t think, I don’t, they’re going to cut or hike. And ironically, that’s actually the best case scenario. I know that sounds crazy, I know that sounds nuts, but if the Fed is just out of the game and the markets can just stabilize here and realize that rates aren’t higher for longer, they’re probably more normal for longer given the environment that we’re in, given the fact that we have still some inflation there, but it’s not out of control rates. Staying stable here guys is probably going to be the best case scenario for the markets even though it doesn’t feel like it right now. Okay,
JACKIE DEANGELIS: So take that one step further. If rates stay where they are, no cuts, no hikes, we had a little bit of a sell off the market, adjusted to that. Now sort of in position then, do you think that there’s room to run here, significant room to run, and is that correction off the table?
SCOTT MARTIN: Yes. Bingo, Jackie. And I think that’s the key point is as we invest with our clients’ money daily, it’s like we need corrections to come. I mean that’s part of kind of the overall marketplace that we forget about concerning. We’ve had this massive runup since the end of last year, and so it feels like the market should just climb its way up day after day, when in reality having corrections is a good thing. You get the weak hands out of the market and you get the strong hands to come in it, buy lower prices and this whole, I guess just freak out session of like, oh my gosh, rates are going to be cut and then we’re supposed to get six cuts and then four cuts and then two cuts. And this may seem a little bit too soon, but if the rate cuts don’t fit, then you must have quit the Fed. When it comes to the fact that there’s a reason that the Fed has done what they’ve done, I think they’ve done a fine job. We don’t talk about the landing anymore, which is crazy. We actually got one and people seem to be upset about it.
TAYLOR RIGGS: Talk to me about how you play these markets. Is gold and Bitcoin still the ultimate hedge?
SCOTT MARTIN: Taylor? I think it is because back in the day, as you know, bonds were a great hedge and they aren’t so good right now. And so nowadays I think you have to look at gold and Bitcoin and there’s all kinds of reasons for hedges in a portfolio regardless, and I think as we get to this summer doldrum season, we get over this rate cut, rate, hike, freak out, and then we get into this little small event in November, the election. I think we should start adding things like Bitcoin and gold portfolios because to your point, Taylor, those are frankly the only things that are working on big, volatile days like we’ve seen this weekend last week.
BRIAN BRENBERG: Scott Martin, my fellow suffering Vikings fan and a guy who knows markets. Good to see
SCOTT MARTIN: You perpetually. You bet.
TAYLOR RIGGS: Too bad Kirk Cousins was
BRIAN BRENBERG: Out. Don’t go there.
SCOTT MARTIN: Don’t
TAYLOR RIGGS: Go to Kirk. The
BRIAN BRENBERG: 49. Not going there now. Okay. I have
JACKIE DEANGELIS: No idea what you’re talking about.
