Program:  Cavuto Coast to Coast
Date:  12/15/2021
Station:  Fox Business News
Time:  12:00PM

NEIL CAVUTO: We have Scott Martin here right now to see how much further we can get the lawyers attention Scoot is the Kingsview Asset Management CIO, Fox News contributor as well. You know, Scott, you know, Charlie, I would bounce around this idea of what the Fed will line up. Maybe not line up, but I’m just wondering what you think the markets do in response. The more specific Jerome Powell is, maybe the more worried they get, the more general its tone, maybe the more worried they get on top of that. It’s a no win situation for him today, isn’t it?

SCOTT MARTIN: Yeah, and he’s been specific, Neil, and that hasn’t worked out too well for him, as you and Charlie just discussed. Now what’s interesting is when you’re talking about the market’s reaction, I think you’ve got a tale of two cities there. You’ve got stocks which are generally weak or meandering at best. And then you’ve got bonds which have been going down in yield and up in price. So if he is indeed going to do two or three rate hikes next year, as one of my friends best says, the market has a funny way of showing that they actually care because rates are down. Since the Fed projected more interest rate hikes coming down the pike versus rates going up like they would be coordinating with the Fed,

CAVUTO: What is that telling you? Normally you would. You would glean from that. They’re looking at a slowdown.

MARTIN: Yes, I think you’re exactly right, and I think they’re also looking at the bond market that is looking at inflation possibly getting a little tamer in two thousand twenty two. So maybe the Fed seeing the slowdown and seeing that inflation may get a little bit more under control because it is slowing at that pace that it’s on right now. You maybe have less rate hikes than we actually think we projected so far.

CAVUTO: So the market and whether it’s returned and that’s always a debate. I’ve talked to some analysts who say, you know, given the strong earnings, you know, the multiples aren’t nearly as out of whack as you would think. Where are you on this?

MARTIN: The market’s high, but it’s not extremely overvalued. You’re right. If you look back at ninety nine, if you look at twenty seven, the market was trading depending on the index. Twenty five, thirty times. Right now it’s trading at twenty one twenty two, so it’s up there. It’s just not all the way where it was in past bull markets. So in our opinion, if we continue to get strong earnings and we continue to get an expansionary fed where maybe they hike rates later in twenty twenty two, I think you still see this market recover and rally at the beginning of the year.

CAVUTO: I’m taking a look at where you would put your money as you sort of wait this out. How do you play this?

MARTIN: Yeah, we’ve been moving stuff around a lot actually in the last couple of months, just because the market’s been kind of ebbing and flowing. We see certain sectors outperform some days and underperform other days. So what we’ve been doing, Neil is putting more money into some of the inflationary, let’s say, affected areas are looking at materials and energy specifically to take advantage of what is still a largely increasing inflationary environment.

CAVUTO: Got it, my friend. Thank you very much, Scott Martin. We’ll be hearing from a little bit later in the show.

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