Program:  Making Money with Charles Payne
Date:  12/31/2021
Station:  Fox Business News
Time:  2:00PM

ASHLEY WEBSTER: Well, markets are slightly lower and have been that way since the opening bell on this very last trading day of the year. But that said, all three major indexes are expected to finish 20 21 with some serious gains and on the precipice of new record highs. So did the Santa Claus rally deliver to expectations? Let’s bring in our market panel today from Kingsview Wealth Management Scott Martin. Great to see you, Scott. And the chief market strategist at Cross Mark Global Investments, Victoria Fernandez, Victoria. Good afternoon to you. Let me begin with Scott, though, Scott. How are we feeling about the markets as we wrap up Twenty twenty one.

SCOTT MARTIN: Not a bad gift from Santa Claus? Actually, I mean, if you go back a couple of weeks ago, three weeks ago, everybody was panicked, coming in to the end of the year. I mean, this is going to be the big unwind, right? As you mentioned the lead in there of this big rally we’ve had and it didn’t happen. And that’s frankly, because that’s typically what happens in market psychology actually is when people start calling for the experts, quote unquote start calling for the great roll over. It doesn’t happen and the market goes back in their face. So I think we should be relatively full of gratitude with what happened here because the market has shown itself to be very resilient and being able now to push through a lot of these same old problems that we’ve laid out with, say, the COVID variant with promises of tax hikes and things from the Federal Reserve as well that were scary for the markets, ones seemed to not be scaring us anymore. There’s a lot to be positive about going into twenty twenty two, in my opinion.

WEBSTER: All right, Victoria, know we’ve had a lot of analysts say, look, you can expect higher interest rates next year. You can expect lower stocks and you can certainly count on volatility. Would you agree?

VICTORIA FERNANEZ: Yeah, I think actually all three of those are probably accurate. I mean, you know, Santa Claus came in with a bang and we’ve been a little lackluster the last couple of days. But the Santa Claus rally should continue into the first couple of trading days of next year. Then we start to refocus and look at some of these items you’re talking about. We do think rates will go up on the longer end. We think there’ll be some consolidation in the equity markets as the Federal Reserve starts to lay out their plan of when they’re going to raise interest rates. And that’s going to cause some volatility. So I think we can anticipate that for twenty twenty two.

WEBSTER: All right, Victoria, I’m going to follow up with you, talk about the cruise lines, the CDC simply says, don’t go crazy, crazy, you know, cruising these days. So where do these and other reopening stocks go from here? I know that’s difficult to predict, but what do you think?

FERNANDEZ: Yeah, I’ll have to look into my crystal ball and see what it tells me, but I think one of the things we’ve always talked to our clients about is don’t make a huge play on pure reopening trades, right? Look at the longer term perspective in these names and see if it’s a business model you like. Let’s see if there’s growth potential. Look at the balance sheets of these companies. It’s what we always talk about for cruise lines. It’s not a place where we want to be right now and we’re not in airlines right now either. I think you can look at the reopening trade more towards the consumer side in regards to consumer discretionary and some consumer staples. I would stay away a little bit more from those highly volatile names of cruise lines.

WEBSTER: I’m going very good, Scott, to you. Yeah. Scott Peloton sliding on a downgrade. Well, one of the great pandemic stocks being able to turn it around or is it more bad news for Peloton?

MARTIN: I hope so because I own some and I own some low. So that’s OK. You know, gosh, though, what an interesting tale actually for Peloton these days. I mean, you know, talk about when you think you hit rock bottom when the girls from Sex and the City take shots at you and then you get downgraded after that. So I think the bad news, I mean, look, the bad news is pretty much everything has happened to Peloton that can possibly happen, right? I mean, maybe the the girls of the View are going to attack them or something. The point is there’s there’s bad news and a lot of stocks right now to Victoria’s point. Same with the cruise lines. At some point the airlines, too. You have to pick these up because it can’t get much worse. It feels horrible. Don’t get me wrong, but I think Peloton is a buy here now.

WEBSTER: All right. Victoria, very good. Scott Victoria Treasury yields dipping today. They’ve been a bit of a yo yo. The 10 year. Do you still like financials?

FERNANDEZ: We do like financials, it’s one of our favorite sectors going into twenty twenty two. We actually think the the longer into the curve has been probably mispriced a little bit when you look at where inflation has been, when you look at where credit spreads are. And so we think that longer into the curve will start to move higher. But it’s not the only reason we like financials. Their balance sheets have been extremely strong, especially compared to where they’ve been historically. We think there’s going to be some long growth. And look, the financials have been hit. They’ve taken a hit the last month or so. So it’s a good place to go in, especially for the big money center banks and maybe start a position if you don’t have one already.

WEBSTER: Very good, we’ll have to leave it right there, folks, but Victoria and Scott Speller stuff, thank you so much for joining us and a happy new year to you both.