CIO Scott Martin Interviewed on Fox Business News 7.30.21
Program: Making Money with Charles Payne
Station: Fox News Channel
CHARLES PAYNE: All right, I want to bring in Wells Fargo Advisors senior VP Mark Smith, along with Kingsview Wealth Management CIO Scott Martin. Mark, let me start with you. I know that you’re mostly conservative. I think you’ve been largely in value. How do you see the rest of this year playing out? Because that’s been a sort of a tug of war kind of thing, particularly with all the different inputs in this economy.
MARK SMITH: I think the rest of the year is going to do as well as the last six months, if you’re looking at value specifically, let’s see what happens. The sectors, right. Financials are doing 20 percent plus since January. You’ve got energy. Last time I was on with you, Charles, I recommended energy to thirty five percent since January as a sector. And then and then you’ve got communications up 15 percent. Real estate in the value space is up 25 percent since January. So are any of those sectors going to go down? Yeah, if we go back to the lockdown. But the last time I checked, when I went outside, everyone’s out enjoying the summer. They’re taking advantage of being out. So those are vaccinator are taking advantage. And I think that’s going to continue. You’ve got Merck that you’ve said they’ve got a new pill that might be released in October. That would be a great treatment for it as well. So that a lot of great news. And so I think the reopening place would be great. I think a lot of the value sector are going to do very well in that environment and continue. I don’t know so much for growth because, you know, we’ve had at all time highs for all these growth stocks. And if we go back to being back outside, I think growth takes a little bit of a hit because we’ve been hanging out in these tech stocks the last year and a half. Staying at home.
PAYNE: Yeah. And we see we see a little bit of that with Amazon today. Scott, you started the year conservative. You went to growth, I will say July. As of yesterday, growth was up five percent versus like, you know, less than one percent for value. It does go back and forth. Where are you right now? Because you did start off a lot more conservative. You got more more aggressive. You were right. Are you staying the course?
SCOTT MARTIN: Yeah, we are. But realizing, Charles, there’s going to be a lot of push and pull here into the end of the year. I mean, a lot of the easy money I think has been made. Now, you’re right, a super spending impetus by the government, also by the Fed, as well as far as stimulus they’re providing. And still this Delta variant that’s out there that’s kind of screwing with psyche, let’s say, you know, does allow, I think, things to stay relatively stable, let’s say supportive from the Fed and the government standpoint. So that’s going to keep the market floor there. But the reality is this a lot of what we’ve seen happen in the market with this rebound in growth, the great numbers that we saw in earnings this week was already factored in. And so what’s this next impetus that’s going to push us over the edge either one way or the other way? And I think it’s probably going to be this back and forth where you’ve got it buying things that are down. We talk about this a lot, Charles. You know, stuff like UpWork today. We picked up for our clients this morning. It’s already rallied about five percent off the bottom. Amazon, as you mentioned, Squares down three percent today. Stocks you like over the long term, stocks that will benefit from either a down area or lockdown situation or a non lockdown situation. When those things pull back, you’ve got to buy them. Apple earnings Tuesday after Tuesday, this week. Great buying opportunity. It’s up since then. That’s where you got to look for as an investor.
PAYNE: I want to get the view from both guys. The S.E.C. this morning, they put a hold on all these IPOs coming out of China. We see where the KWEB, which is a Chinese Internet stocks, have been crushed. Our names, conversely, have done well. Is that a place, Mark, that you would be looking to buy weakness? Obviously, you know, I don’t know what’s going on with the President Xi over there and what they might do to reverse some of these actions. But if they do reverse them, you might think some of these names will pop.
SMITH: Listen, I’m telling my clients that there are going to be in China, they’ve got to be with the companies that have really changed the paradigm. You’ve got companies that are as big as Amazon and as big as Uber, the Chinese virgin is over there. I don’t think anyone’s going to start hailing cabs on the same street in Shanghai. I think so.
PAYNE: So you saying like a DiDi or the Alibaba and the…
SMITH: Yeah, absolutely. I mean, these
PAYNE: Things are not inspite but buy the weakness.
SMITH: Absolutely, the transformational companies, I don’t think we’re going to go back to picking up packages from the front door stores that get delivered. So I think these companies, even though they’re having a pullback, I’m telling my colleagues, my my clients are dollar cost averaging some of these names because they really aren’t going away no matter what Xi’s doing over there.
PAYNE: Hey, Scott, let me get your thoughts on buying the Russell the Russell two thousand and you know, it’s been a juggernaut, but more recently, let’s call it the last four or five weeks, it’s been weak. It’s the best performing equity index today. I think it’s oversold. I think it also benefits from a weaker dollar. Are you a buyer there now?
MARTIN: Yeah, Charles, definitely. It’s oversold versus its large cap brethren. But, you know, the Russell hasn’t performed very well versus the large cap stocks as the breadth has thinned out. And that’s been kind of disappointing because in times when the market had had thinned out in previous years that Russell had stepped up. So for us to get back into small cap here, which we have since sold, I’d like to see that firm up a bit, Charles, which it probably will into the end of the year, because I think there’s some buyers in there. But at least for now, it still seems like there’s a lot of weekends hanging out.
PAYNE: All right, Mark Scott, thank you both very much, great information and we’ll be we’ll be watching and trying to make some money from it.