Program: Cavuto Coast to Coast
Date: 4/27/2022
Station: Fox Business News
Time: 12:00PM

NEIL CAVUTO: That’s something we’re we’re keeping an eye on. How much ground could be made up for that? We get a read from Scott Martin, Kingsview Asset Management CIO Jonathan Hoenig as well. Scott, when you look at a day like today, I do notice it’s very, very hard for the market to put two back to back winning days together. They’ll get a, you know, a spurt of activity and all of a sudden it will dissipate and then more. The common rule is to sell than to buy. That might change, but it has been a pretty reliable rule of thumb. What do you make of that?

SCOTT MARTIN: Yeah, a factor of the market phase right now, Neil, you mentioned it. I mean, alpha earnings, you get good earnings, you get good revenues and the stock goes up and then gets sold throughout the day. So that’s the phase we’re in and that’s going to continue, I think, through this earnings season. But you mentioned a couple of names in your intro there. My goodness. I mean, Facebook coming out very soon. Amazon and Apple have to come out as well. The good news is, I think if there’s any silver lining with what happened with Netflix some days ago, the expectations are starting to come down. Google yesterday, too. So as these companies come out with new reports, if Facebook does fall flat on its face, pun intended, you might not have as big of a sell up as you one might think, because I think some of the things are happening in Facebook today, selling off right now that are getting into expectations of maybe lackluster earnings here, at least for this period of time.

CAVUTO: Well, if that happened to Facebook, that would be a major disappointment. See what I did there? It’s a meta. All right. Listen, guys, if you hate my wit, then, well, no one appreciates my wit. Jonathan Hoenig, let me ask you a little bit about and we’ve touched on this before, Jonathan, what you tell investors these days, some of them, especially with the big technology names and even with the fall off of some of them that have gone well into bear market territory, they still made a lot of money on them. And one investor was telling me, I just don’t want to run it back down to no gains at all. So what do you tell them to do?

JOHNATHAN HOENIG: Well, it’s all about one’s own individual context, Neal, and also expectations and also stocks themselves. I mean, as you mentioned, some of the names like Facebook, like Microsoft, Netflix down 70% year to date. So even made up, for example, it’s down 50% year to date. Well, now it has to gain 100% just to get back to even. So, I think some expectations setting is in order here. Look, we’ve had a dramatic comeback since the pandemic lows, everything from the meme stocks to the FAANG stocks, the technology across the board. So these are the names that have led the market on the way up and the fact that they’re sputtering, as Scott mentioned, sputtering so heavily now. I mean, even today, Neil, 555 new lows, only about eight new highs. So the market’s having trouble getting going without tech leading the charge.

CAVUTO: You know, guys, what I thought was kind of interesting and maybe a story of our times is what happened. Robinhood, you know, now announcing it’s going to lay off 9% of its workforce. This was sort of the means by which a lot of young people in particular, as you know, Scott, got into the market. And I’m wondering if that is saying something about the frenetic activity behind that and whether this is an indictment of that. What do you think?

MARTIN: There was just a flash in the pan for Robin Hood. It was also the Darling Neil to steal that word from you, the darling of the IPO smash that was going on about a year, a year and a half ago. So they got public, they got liquid. A lot of folks got rich off of that. They were privately holding those shares and they kind of succeeded in that route. But once they came out, once you kind of saw what the company was all about, had some trading issues and some other things going on there at the company that were not well run. Obviously, it got the right valuation and continues to do so. And of course, competition. I mean, with respect to what they’re doing, they’re not doing anything amazing with respect to how their business is. So therefore, as they continue in their say line of fight here, I expect the stock to go lower.

CAVUTO: For technology as a group. How are you playing at these days, Jonathan?

HOENIG: Well, I mean, I’m actuall avoiding it, Neal. I mean, you know, technology is such a major part of the S&P 500 of the Dow. I mean, these companies aren’t tech companies anymore. You know, Apple, Microsoft, Netflix, these are the stalwarts of the old overall economy. So even if some of our viewers don’t think that they’re overweight in technology, just that S&P 500 index fund is likely has a big portion of it in technology stocks anyway, as Scott alluded to. I mean, look, the times are different now. We’re not in the midst of the pandemic, the peloton’s, the the zooms, those stocks are underperforming now. And inflation is the big story now. I mean, the ten year yields gone from about 1.6% to two and one half percent in just one year. So these are different times. I think they requires a different different portfolio than just technology stocks.

CAVUTO: All right, guys, if you can just stay right there. Want to get the latest right now on.