Program:  Cavuto Coast to Coast
Date:  2/22/2022
Station:  Fox Business News
Time:  12:00PM

NEIL CAVUTO: As you can see, as Mark was speaking, I’m not blaming this on Mark, take a look at the corner there. What’s going on at the corner of wall and broad with the Dow down session lows right now almost 530 points? Scott Martin The market clearly doesn’t like the uncertainty around this, and it’s selling first, maybe asking questions later. It has a history of doing that, but what do you make of its behavior?

SCOTT MARTIN: It’s exactly what you said, it’s self first, and I hope ask questions later, I mean, eventually there will be questions to be asked and maybe some answers. But I’ll tell you, Neil, that the market we forget this, though, is investors and money managers. Sometimes the market gets emotional at times, kind of like humans do, I guess. And I think as humans are involved in it clearly, and I think there’s just as an investor, you have to remember that a lot of investments that hopefully you’re making are long term in nature. You’re hopefully investing in good companies as we are at Kingsview. So as much as it sounds crazy, I like days like today, believe it or not, I mean a sliver of them, because you can find value in companies that are very good, that are doing very good work like Home Depot, for example, very good earnings report recently, and they’re getting smashed today. And you can buy these companies at discounts because they will go up again when the smoke clears.

CAVUTO: All right, you know what, the Dow’s fall today, I think we’re close to down eight percent this year on the Dow, over 10 percent on the S&P, which would be obviously a correction. We’re close to 15 or 16 percent of the Nasdaq or at a bear market when it gets to 20 percent. This cascading continues, punctuated now and then by some days where people are calmer, but it’s like a drip drip effect. What do you make of that?

MARTIN: It’s hard to take. I would like my I’d like my drawdowns fast and furious, frankly, you know, but they don’t come like that, you know, the elevator kind of goes up and down when you’re in the markets and you have to be ready for these times. I think the one thing, Neil, that’s happened in the last couple of years with respect to recovering from COVID and all the government stimulus, the Fed help has been that we haven’t been used to periods like this very much. Or at least they were very short lived, but they happened. In fact, if you look over the history of markets, you know, I’ve been around for for quite a bit of time, maybe more than yourself, even though you look about, you know, 10 years younger than me, frankly. And it’s like there are times that we remember in our careers. I’m telling you when times do happen like this and what you have to do is remember with the long term is remember that these are just as natural as upward sloping markets. And there are times when you need to get into stocks and get into investments that are pulling back a little bit because that’s better than buying them high and chasing high prices.

CAVUTO: You know, it’s interesting, though, because we’re so focused on sanctions against Russia and particularly Vladimir Putin and his rich buddies. And I’m just wondering that can have a reverberating effect that doesn’t necessarily mean you go slow on the sanctions. But when we’re hearing from HSBC in Europe, the market contagion saying that itself, it’s a British bank, but that it will be saying this, but saying that European banks are disproportionately exposed to Russia and I think mentioned is the Dutch lender Engie is RBI, a number of other banks in Italy and in France that would be impacted with a freeze in moneys going to and from Russia. And that that I think the gist of what HSBC is saying it will spill over to all financial players. What do you make of that?

MARTIN: We’ve heard a lot of that since 2008. That was the big contagion effect, remember back in 08 with a big financial crisis. I mean, we’ve heard that a lot though, haven’t we remember the Greek debt crisis, which seems so far, long ago. It’s like six years ago that was going to be a big deal and that was going to be this big contagion that didn’t happen. Evergrande, which was the big China real estate company recently, there was going to be this big contagion in Asia. From that that didn’t happen, at least hasn’t yet. Look, banks that have exposure to Russia, that’s overly so as far as their balance sheets, they can do that at their own peril. I don’t know why they would do that to begin with as good business practice. But that notwithstanding, there is always a concern of spread. There’s always a concern is contagion, in fact, because it triggers this thing in our minds. Back in a way. But I think banks and hopefully their management are a lot smarter these days and a lot better capitalized these days to be able to stem some of the spread that happens with that. But it’s one thing that you have to consider when you’re looking at the advance of what’s going on with Ukraine and Russia, and God knows what else. But there’s things that are going to go on that are going to make folks say that. But I believe that there’s enough, let’s say, safety or sanity in the system to at least prevent something like 08 like we saw when that happened with our banks here.

CAVUTO: All right, thank you, my friend. Scott Martin, who’s actually he’s young enough to be my son, but that’s OK. I like it when he says good things. Scott, thank you very, very much.