Program: Cavuto Coast to Coast
Date: 6/27/2022
Station: Fox Business News
Time: 12:00PM

DAVID ASMAN: Now to our top market story, though. Stocks today wavering between positive and negative territory. Despite some good news on housing and durable goods orders, it seems that worries over inflation outweigh just about anything these days. Joining me now is Kingsview Asset Management, CIO and Fox News contributor Scott Martin and capitalist pig hedge fund manager and Fox News contributor Jonathan Hoenig. Gentlemen, great to see you both. Thanks for being here. Scott, are investors positive about anything these days?

SCOT MARTIN: No. And that’s a good thing, David, because the data and the attitude, like you said, the consumer confidence numbers alone, business confidence numbers so bad that they’re good, it’s so dark that dawn is coming now. How long does that take? That’s anybody’s guess. But it’s soon, because even though the Biden administration and a lot of his economic council members say, no, no, no, no recession now, maybe not ever, at least not during our time in office or other experts, David, that you have on the shows that say it’s 2023 problem or 2024 problem? No, the recession is here right now. We had negative GDP, GDP growth. Easy for me to say in Q1, we’re going to have flat or say negative growth in Q2. The sooner the recession comes, the softer, the more shallow it is, the easier we’re going to come out of it and then we grow again. Because this recession, unlike a lot of previous ones that you and I have gone through, David, not in our relationship, but on the economic side of things. They have been demand driven. The past recessions are this is more of a supply driven issue, which is a good thing because demand is there. We’ve got to get supply and kinked, then the economy will grow again and I think it’ll actually boom once we get that figured out.

ASMAN: Well, Jonathan, the good news is that for 13 years, a lot of investors were under the misapprehension that you could keep printing money to your heart’s content, you would never have inflation. Finally, they realized that there is a limit to that, and I think their willingness to admit to that is a good thing. What do you think?

JONATHAN HOENIG: Yeah, exactly. That’s it, David. And it’s great to be with you as well. I mean, look, whatever whatever Biden would be saying in terms of future of of money printing, right now, the market looks very weak in terms of what the dollar at least looks like. I mean, you’re looking at the dollar at two week lows. You’re looking at stocks at 52 week highs. That’s just at least for now. A lot of the stocks that the market’s playing on a week can quite waking quite weak in terms of the future of stocks. Well, Scott, have stocks found a little bit of a bottom here or is this just, you know, a pause on the way down further?

MARTIN: Probably both, I think. David, you know, look, window dressing, end of the quarter type of phenomenon, it happens a lot. I think we’re seeing that at the end of Q2 here. I think there’s some things to be constructive about as well, as I mentioned in my previous comments. But David bear markets do this. They take the elevator down and the stairs up or they take the stairs up and then jump out the window. So the frustrating thing right now, if you’re an individual investor, is you’re going to have these movements for a couple of weeks a week where you think things are all clear and then they possibly are not. But as our investors mostly are, I mean, there’s certainly some that are closer to retirement than others. A lot of folks that we’re working with, David, have one, two, three, four or five year time horizons. And there is all kinds of stuff in the cybersecurity space, cloud, space, tech, space, retail space, consumer discretionary space, hospitality space. I could go on and on. Even in the close markets that Jonathan shops at, there’s great areas of value there that folks need to jump on to here because this, like many other downturns in the market, is a tremendous buying opportunity, if you can look beyond the short term.

ASMAN: : Well, Jonathan Scott, as you just heard, thinks that we are in a recession right now. Not only is it unavoidable, but we may be in one. Do you agree?

HOENIG: Well, you have to look at the markets right here, right now. And at least looking at stocks right now, 52 week lows are higher when it comes to stocks. In terms of bonds, I mean, you look at 52 week lows of 50 stocks. If we close 40 stocks at 50, we close. So at least for now, it looks like more stocks are weak than they are then strong, but looking forward to anything could happen.

ASMAN: Scott, the Nasdaq, of course, is really taking it on the chin. And we had David Sacks on Fox Business about a week ago talking about he’s he’s one of the original investors in Facebook, Google, PayPal, you name it. He’s been there. He says that it is all dry, all that capital is drying up, all of the investment capital, all of the venture capitalists all drying up. And it’s going to be a long time before it recovers. What do you think?

MARTIN: Don’t buy it. As far as I don’t buy that explanation, I think he’s right. I mean, it is drying up. But David, we’ve seen this man. I mean, we’ve been like let’s say it was oh eight, let’s say was even 2020, capital dried up. It was the desert. But as soon as the market or the economy got some footing, as soon as it stabilized, maybe that comes after November, after the midterm elections. Maybe Biden and crew, maybe Jennifer Granholm, maybe they figure out energy policy. I know that’s a that’s a farce or that’s that’s a that’s a long winded or long hoped thing that’s going to fade. The point is, things are going to change and capital does dry up, but it comes back super fast. Once the market does and once folks get comfortable, then this is no different this time until it does.

ASMAN: On the other hand, though, Scott, staying with you for a second, NASDAQ doesn’t look like it’s going to come back any time soon. I mean, I don’t see a real a real power. We do remember after the dot com bust and it was a long time before before Tech came back, aren’t we in a kind of similar period right now?

MARTIN: Oh, possibly. And you write About.com. It took some time back. Now, some companies did recover faster than others. So I think you may have to individually select some positions there. I mean, the Googles are way oversold. Microsoft, of course, and some other ones, as I mentioned, in cybersecurity and cloud. But similar to David financials after 2008, 2009 never supposed to come back. They did were supposed to have double dip recession, etc.. I love it when stuff looks like it’s not going to come back because it usually does.

ASMAN: Scott and Jonathan, good to see you both. Thank you very much for being here.