Program:  Making Money with Charles Payne
Date:  1/28/2022
Station:  Fox Business News
Time:  2:00PM

CHARLES PAYNE: So, you know, on this show, I’ve been talking about this stealth market crash because it’s been going on for literally months and it’s been masked, however, by the major industries. I mean, just for example, just this year, the S&P is down nine percent. But forty nine percent of the names are down 20 percent or more from their 52 week high, and the carnage is even worse than that on the Nasdaq in the Russell 2000. This is why I think investor sentiment rates are so low because in real life, investors are still pumping in tons of money into this market. Sure, it’s obviously moving to different niches, but there’s still buyers, even as they feel the pain. The question is, does it actually make them the smart money? I want to bring in Michael Lee and Scott Martin. The number one axiom in investing is buy low, sell high. So that means buy the dip, Scott. I mean, the retail investors are doing they’re doing this during the middle of a meltdown. Does that make them the smart money?

SCOTT MARTIN: At times it does, Charles, and it’s easier said than done, certainly, I mean, psychologically, it always doesn’t feel the best. In fact, some of the best trades I’ve made are ones that I had to kind of close my eyes and hit the button on. So I agree, I think on some of these big down days, we’re getting a ton of volatility, both up and down these days. You got to pick up stocks that you like, maybe add the positions that are down because these are long term holds for most people that have good prospects going forward. Once we get through this malaise.

PAYNE: Mike, I know you have been bullish throughout this entire period, so I would assume that you like this approach.

MICHAEL LEE: Yes, Charles, yes, and I would have to say, though, this kind of depends on what your expectations are, that if we have a big sell off that you’re going to make your money back or get a quick trade, I’d say day trading now is kind of as hard as it’s ever been on the backs of one of the easiest periods to day trade ever. But, you know, keep in mind, this is not the first led the first Fed led sell off over the last decade. We had ones in two thousand eighteen 2016, 2015, 2014, 2013, 2011, 2010. Anybody who bought into those dips 12 to 18 months later was handsomely rewarded.

PAYNE: What I’m talking about, you know, some of these areas that that have really cause, I think, investor sentiment to get hammered. One is SPACs. And then, of course, they’ve underperformed the market by a mile. This month, 14 planned SPAC offerings worth $4 billion have been pulled. You know, Mike, I actually love it. Now I’m hoping that maybe with stuff like this that maybe somehow the FCC demands more transparency. I know the onus is always on buyer beware. But things like this, I think, have given the market a bad name.

LEE: Well, Charles, you know, I’ve said it before, I’ll say it again, I hate SPACs, and you can make these things so transparent, they’re translucent. The fact of the matter is the incentive for a SPAC is to do a deal. And, you know, the bulk of the time they overpay for those deals, which is not the shareholders interest. And SPACs that actually work out and people make money on those are the exception, not the rule. I would I would. You know, you want to steer clear landmines. I’d steer clear of SPACs in any market environment,

PAYNE: of course, have been a lot of land mine, Scott. Even without SPACs coming into the session, 44 percent of names on a Nasdaq Composite were down 50 percent or more. Now, surely they don’t all deserve that fate. So looking to these ashes sifting through the carnage? Where do you see some opportunity?

MARTIN: Yeah, there are a lot of dead bodies out there, Charles, and you can find some good ones, I think, to pick up here. I mean, two that we like right now are Workday and Zebra Technologies, two names we’ve talked about on the show before with you just again, stocks that I think are oversold, stocks that do make money, stocks that have nice prospects built into recent earnings reports. And I think their earnings are going to be very good this quarter and next. And therefore, these are companies that are just down with the crowd. So therefore you go into those ashes, as you mentioned, and pick up some stocks that have some real prospects here to grow going forward. And they’ll be handsome rewarded when the when the market bounce bounces back.

PAYNE: Mike, what are you looking at?

LEE:  So, Charles, next week we’ve got earnings from Facebook and Google and while I would say from an ideological standpoint, these companies are pretty evil companies, but they’re printing money left and right. Saw, you know, you saw with Apple and you saw with Microsoft that these mega caps, the reason why they are mega caps is their earnings power and how successful they’ve been. I don’t think that changes. Facebook is down 22 23 percent from its September high. You could get it at well, I guess it’s Meta now. But but owning these names into earnings is probably not the worst idea. All right. And I’d say, you want to be adding in this sort of ugly environment of multiple contraction. So as these companies continue to grow at double digit growth rates in the top and bottom line, you know, two or three years from now when you have some multiple expansion, you know you’ve taken advantage of the earnings growth as well as a multiple expansion, a more favorable market conditions.

PAYNE: Scott, I’ve got just 20 seconds, but one or two names next week. Earnings Do you want to be in before the earnings report?

MARTIN: Yeah. Two big ones Charles, Google and Amazon. I mean, have you waited in the S&P and Nasdaq, of course, and they can save this market. So seeing how Amazon does reflective of the consumer, how Google does reflective of crowd cloud it, that is an internet. You’ve got these two names. You could actually come in here and really let this market back off the ground.

PAYNE: Michael Michael Lee and Scott Martin to the best. Thanks a lot. I really enjoyed that conversation. I hope people were taking notes.