Program:  Cavuto Coast to Coast
Date:  6/30/2021
Station:  Fox Business News
Time:  12:00PM

NEIL CAVUTO: All right, we still got a couple hours to go with the markets are looking at fairly hefty advances, certainly on the month of the quarter, the half year it all wraps up today. So how are we doing? John Tamny, Real Clear, markets editor. We’ve also got Scott Martin, Kingsview Asset Management. Scott, you know, anything can happen in the second half, but given all the crazy undercurrents and news developments and concerns about festering new cases of the Delta Covid and all the rest, it’s amazing to me that we’re looking at the gains we are, but they’re substantial. What do you make of it?

SCOTT MARTIN: Agree. Anything can happen and usually does, Neil, as we’ve learned over these last several years. I like how you set it up, though, because I was thinking, as you were asking the question, people are almost getting a little bit too sanguine about the markets these days. I mean, you talk about all this economic growth, you talk about all this job growth and it’s everybody’s like, oh, my God, the economy’s going to reopen and things are going to be great. But there are these worries about the Delta variant. I believe there are certainly worries about folks maybe not coming all the way back to the workforce. I mean, I don’t know if anybody’s tried to call a customer service of really any company at home these days, but it certainly doesn’t work out very well because nobody seems to be there. So the reality is, is that that’s just a personal problem I have. The reality is, though, is that there’s enough kind of push and pull here, Neil, going on to where I believe the markets can keep rising as long as some of the news and some of the worry stays out there.

CAVUTO: When I’m on the phone with them and say, I’m Scott Martin, dammit, usually..

MARTIN: they’re going to hang up on you.

CAVUTO: John, what do you make of this and the underlying economy, which is more data today that shows pending home sales, the best than the growth, the best we’ve seen since 2005, record prices for average homes, that sizzling retail sales, cars going over sticker price. Now because people are just, you know, in such demand, that’s a pretty good backdrop. What do you make of it?

JOHN TAMNY: Well, yes and no. Let’s never forget that just broadly, markets respond and make big moves based on surprise. And so what we’ve seen, and I think this explains the rally, is that Joe Biden was promising a major infrastructure package, which would be a tax on growth. He’s not going to get it. There is all this talk of major, major tax increases. There is no vote in a divided Congress to give Biden what he wants. And so I think there’s broad market optimism that he’s being clipped off at the knees. When you look at housing, though, that’s a different thing. Housing is not investment. Housing is consumption. And if you look at periods when housing is done best, the 1970s, the 2000s, it’s not a very bullish indicator because it signals a move of precious wealth into the consumption of something that doesn’t make us more productive or cure cancer or create better software and away from the savings and investment that actually drives progress. So to me, that’s kind of a bearish signal.

CAVUTO: All right, well, I differ with you on that, but, Scott, it is the bullish underpinning for people to be in this position at all said something, but to his point that it could be lead to longer term issues. The market doesn’t see those longer term issues for the time being.

MARTIN: Not at the moment, but you get a few more data points like we’ve seen in housing lately, Neil, and I’ll tell you, those data points I think will back up kind of what John was talking about. And I think one of the other problems about housing is, as we’ve seen, like you mentioned, in some of the periods when housing has risen so well, it’s crashed pretty darn hard afterwards. So I feel like if we continue on this wild slope upward as housing is on right now, we may soon have a similar crash going forward in the next few years.

CAVUTO: All right, guys, I very much apologize for the truncated nature of this, given all the breaking news, but very interesting read on all of this.