Kingsview CIO Scott Martin on Fox News Business Cavuto Coast to Coast 1.25.23
Program: Cavuto Coast to Coast
Station: Fox Business News
NEIL CAVUTO: Scott Martin Very good at that. Kingsview Asset Management, CIO. You know, Susan spelled out a lot of the big names we’re still waiting to hear from. Maybe they can change this sentiment that built around Microsoft. It is interesting that the Microsoft numbers a good reaction first than people chewing on it almost as if they wanted to find an excuse to say, all right, this early pop in technology was overdone. How do you feel about that?
SCOTT MARTIN: Well, I feel you’re right. And like the spectacular Susan Lee said, I think it’s about expectations these days, Neal, more than it is actual fundamentals. And I believe that behavior you’re talking about that you saw in Microsoft yesterday. And I think, frankly, the behavior man we’re going to see in Tesla after hours today is going to be exactly that. These expectations of things maybe still being too good, even though we should all be expecting things to be a little bit, say, less sanguine than they have been in this in the past few quarters, and then finding a reason, as you said, to sell these stocks. But as you’re seeing with Tesla today into the earnings call, as you’re seeing with some of the Microsoft price action, is I think you’re going to see with a lot of the tech stock price action, my friend, these are reasons to buy these stocks or opportunities to do that, because as I’ve been telling you the last few months, I think stocks, especially in the tech space, are absolutely overdone. And for that matter, if you’re a long term investor, this is where you should be picking them up.
CAVUTO: You know, I know you weren’t even born at the time, Scott, but I remember after the Internet boom went bust, there was.
CAVUTO: There was a great theory that no one, you know, that none of these guys would survive. Well, we knew that the cream of the crop survived. I believe at the time it was the eBay’s and the Amazons and the Apples and the
Microsofts and some of the names that are thriving today. But, you know, the Pets.com and a lot of these others went by the wayside. And I’m just wondering whether we’re going through a shakeout here, that the big names won’t be as impacted as some of the ancillary names. How do you play that?
MARTIN: Yeah, I’ve read a lot of reports on those olden times. What an amazing time to be alive, it sounds like, or seems like. And Neil, it’s an indicative, though, of of the process of what happens during recessions. What happens during bear markets is a lot of these companies or some of them go away and they frankly should probably because they’re mismanaged, they don’t have a lot of cash flow. They’re heavy in debt and they obviously don’t have what it takes to get through a downturn. So unfortunately, some of those companies out there like the few bows of the world, not to just pick on them, but there’s a lot that have come down. Smile Direct Club is another one. You know, these are high flyers, man, that were pushing 80, 90, 100 bucks at one point in 2021 and 2020, and now they’re pennies on the dollar. Companies like that, like they did in 99, 2000 and 2001, can’t make it. And so what ends up happening is they go away, they go back. But then in the next expansion, which will come, there’s new companies that pop up and do the same thing. And that’s just the cycle.
CAVUTO: So on technology names as an aggregate, if you were to buy something that mimic the Nasdaq 100 or, you know, a tech ETF, they’re whole bunch of them, I guess obviously what’s in them, you wouldn’t give up on them as an asset class.
MARTIN: I would not and I would not give up on myself because I am like the Nasdaq 100 at times. But I like Adobe Neil right here. Adbe is a company that got trashed last year, I think overly so, and that’s a good name.
CAVUTO: Got it. Always good seeing you, my friend. Scott Martin Kingsview You Asset Management.