Program:  Making Money with Charles Payne
Date:  12/17/2021
Station:  Fox Business News
Time:  2:00PM

CHARLES PAYNE: Want to bring it to the best market gurus, Victoria Fernandez and Scott Martin. You know, the old market adage, just buy the first, the first hike, sell the penultimate rate hike. And now we’re hearing, at least from Bank of America, that it’s all wrong this time that the is there. The chief investment strategist, in fact, is looking for full blown capitulation. And of course, you know, Victoria, I think capitulation is different, at least from when I started in this business. It’s not a one day, even the two day event in my mind, it’s been happening for weeks, and I think we’re closer to the point where we should be buying. That’s selling your thoughts.

VICTORIA FERNANDEZ: Yeah, I would agree with you, Charles, that it’s not a one day event, and I think the last couple of weeks and all the volatility we’ve seen is proof of that. So look, if you’re waiting on the sidelines waiting for that one big moment, trying to time the market on what that one capitulation moment is going to be, you know how we feel about that. We think that’s a fool’s errand and you need to be building your portfolio over time. But look, here’s the key. You look at the S&P five hundred and it’s down a couple percentage points from its all time high, but that’s really being driven by a handful of names. Look at your shopping list. The average stock is down 13 to 14 percent from its all time high. So get in there on some of these pullbacks. Get the names that you want and start building your portfolio, and I think you’re going to have a lot of opportunities to do that with the volatility going into twenty twenty two as we still do have uncertainty around growth, inflation and central banks.

PAYNE: So, Scott, I mean, are you waiting for that ultimate capitulation moment? I guess in this day and age, it would be a 20 points on the Dow, maybe a three percent move on on the S&P. Or are we living it right now?

SCOTT MARTIN: Yeah, I mean, it’s around us. Charles and I think to Victoria’s Point, it may not be this this big two, three or four or five day kind of break. We’re already seeing that in several names. And so the capitulation is here in some names. I mean, look at Teladoc, look at Peloton, look at Zoom. I’ll look at Adobe just the other day. I mean, my goodness, if you’re an Adobe investor like we are, we took that pullback of the 10 percent after earnings and guidance to just say, Hey, we want to add some more here. So you’re seeing the opportunities arise in these individual names. So just don’t wait for the big down day, I think over on the markets, but watch these initial names as victoriously. You don’t get the shopping list out. And when they pull back to say support, you got to get in there and add your position.

PAYNE: You know, so funny. I’m I really know. Still, a lot of people still waiting for a capitulation from March 2009 that one final leg down. All right, so let’s talk about the last seventy two hours, 48, 72 hours. We’ve had different narratives every single day, right? Initially, when we had the FOMC meeting, techs rocked and then they got rocked. Cyclicals yesterday led the way, and now today’s cyclicals are getting slammed. The fence names show life earlier in the session. And guess what, Victoria? Here comes tech again. I mean, first of all, you know, a lot of people are wondering, though, about the shelter in the storm. But more importantly, have we figured out what the what the Fed is going to do and what it means for the market?

FERNANDEZ: No, I don’t think we figure it out completely, and you see that with the discontinuity between the equity market and between the fixed income market, and so really you need to have that balanced portfolio right now instead of trying to time that rotation perfectly. You know, we’ve been trimming our growth, your names when they’re on updates, trimming some of those down and focusing more on cyclicals and more on value names. We’ve talked about consumer facing names. We liked Target, Lululemon, Dick’s Sporting Goods, but we’re really focusing on the financials right now. Look over the last month, including today and see the pullback in the financials, especially in the bank names Bank of America, JPMorgan. You’ve got names here that have good balance sheets. They’re cheap to the market. You look and see, possibly dividend raises next year. And we do think the longer under the curve is going to move a little bit higher to catch up with inflation expectations. I think the long into the curve is pulling back now because of Omicron, so we would focus on some of those names.

PAYNE: All right. And by the way, we’ve got a great dividend guy coming in 30 seconds, but I’m give Scott the last word. First two things, Scott. I’m loving the fact that on the Nasdaq, at least it’s the individual investor bringing back those so-called meme stocks. And now these other tech names, some you just talked about, but also Gold Gold’s acting pretty intriguing and living up to the old to It’s all respectable, you know, being an alternative to inflation. Is it time to start to add some gold here?

MARTIN: We believe so. We’ve been back in gold, Charles, given the fact that gold was not acting well for most of the year and I think the shine was off gold then and certainly as the inflation numbers have started to really come to pass, I think gold is finally getting its its luster back, let’s say. But the reason you own gold is not just because it goes up on days like today, but because it’s doing something different than other things in your portfolio. It’s different than equities, it’s different than fixed income and hopefully different than some of your other alternatives. Maybe, maybe crypto. So gold for us is a position in the portfolio is something to hold here as we try to navigate this volatility.

PAYNE: And as my man, William Devane said, you can hold it in your hand and look at it. Victoria, Scott – Have a great weekend.

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