Program: Cavuto Coast to Coast
Date: 3/25/2022
Station: Fox Business News
Time: 2:00PM

CHARLES PAYNE: So this has been a crazy, crazy week. Here to help us hash it all out. We’ve got Kingsview Wealth Management CIO Scott Martin Scott. You know, first I got to just ask you, the last two weeks in general, this market. You know, everyone that came on was cautious. They were out in the market. They were in defensive plays. I mean, have you been caught somewhat by surprise at the resolve of this market the last couple of weeks?

SCOTT MARTIN: Yes, I have. Charles, it’s one of those things, though, where you get surprised, you get caught off guard. But you also have to think back in recent history as to this is what happens when data gets really bad, when the economic climate gets a little bit murky, and when there’s geopolitical issues all around and everything looks really terrible and everybody’s telling you to get out of the market, the market’s going down, rebalance, reallocate. That’s actually the time you should be reallocating. But to more growth, more aggressiveness. And so while I am a little surprised at the resolve, I’m not surprised in the sense that we’ve seen this movie before it and we’re seeing it play out right now.

PAYNE: Let’s talk about some of the niches that have come on chips. Yesterday, NVIDIA was up 10%. You know, are you are you buying chip stocks at this point?

MARTIN: Well, I wouldn’t chase them on a week like this week. Now we own Nvidia and a lot of our ETFs that we run through Monarch funds as well as through a lot of the accounts that we run for our clients. We already have Nivida, which has been good. I would look at some other chips though. Charles maybe is seeing it spread over to maybe the Andes of the world or the Texas Instruments. But I wouldn’t chase someone on a week like this week because there’s a lot of froth in those names now, at least in the reaction to in video so far. So watch them come in a little bit, maybe 5% down from these levels and I’d be a buyer.

PAYNE: What about oil stocks, fossil fertilizer stocks? A lot of these names getting an extra bump from what’s happening over with the war on Ukraine.

MARTIN: Yeah. They’ve been good and they’ve been good. Diversifier. I think that’s the biggest news about oil this year is that it’s been great. Even though it’s equity, you know, if you look at Chevron, Exxon and some of the others, it’s like that’s been a good diversifier away from traditional equity because those have been up. Well, a lot of stuff’s been down. So we have some energy stocks in our portfolios here at Kingsview would tell you this, Charles, right now, I like the pipelines. So if you look at stuff like MLP, higher dividend, close to 78% and that’s the mover and shaker of the oil in the crude that we need to start going in this country as we try to develop, I think, some sort of energy policy maybe.

PAYNE: What about cannabis names? You know, we all know cannabis was hot then they fell off. They’re on fire this week, no pun intended. A lot of rumble rumbling about legalization or not decriminalization, if you will. You know, they’ve come down a lot. Would you be a buyer here?

MARTIN: They’ve been crushed and it’s tough with cannabis because they kind of were that forgotten asset class, like you mentioned, Charles, in the last six months. I mean, dare I say a lot of those stocks went up in smoke and that is a pun intended. So with respect to where cannabis valuations are, I think they’re attractive. But to your point, it’s largely politically driven right now. And if you get bad news in political land from the cannabis area, that’s not good. If you get good news, it’s obviously good. But no, no telling how that’s going to pan out short or long term, really.

PAYNE: You know, Scott, I was reading a headline today and Ukraine, you know, there’s a counteroffensive. They’re going on the offensive. They’ve held the ground. The war is a month old. Russia is not winning. In fact, many think they’re losing. And it feels like there could be a correlation to, you know, we’re rooting for Ukraine. And every time we see something positive there, maybe the market going up, I’m not sure. But if the tide turns and it looks like Russia is on the verge of some sort of decisive victory or their atrocities start to increase, would that start to hurt this market, in your opinion?

MARTIN: You might. Charles as you know, the market usually preempts that good news or bad news in some cases. So it may be too late when we finally get that news weather. Like you said, it’s good or bad. But look at any kind of resolution, any kind of positivity out of that area of the world is good. Longer term now, short term, there may be a little bit of gamesmanship here to play on that. But longer term, look out, six, 12 months, that’s going to be a largely positive development for the S&P 500 and frankly, probably for fixed income as well.

PAYNE: And, of course, for the world and humanity. Scott, thank you so much. We covered a lot. Folks, we’ll be right back.