- 2023-10-06
- Posted by: kimsite
- Categories: Commentary, Insights, News
Click here to listen to the full interview.
NEIL CAVUTO: Certainly Scott Martin is as well the Kingsview Asset Management CIO, Fox contributor. Very good at all the implications implications of this, Scott. It’s a promising development. Doesn’t mean that a strike is resolved, but it does mean for the time being, it’s not going to get worse, which seems to hint that the automakers are very close to the type of figures the UAW wants. How do you read it?
SCOTT MARTIN: I agree it’s not getting any worse right now. But Neil, as we said, is great. You said, too. I mean, you could have a day or two that go poorly. The wind direction changes and things go down the drain. So, look, I don’t take any of these days. I agree there’s been some progress in the last couple of days. I don’t take them for granted. But it does point out the fact that you noted, which is there’s probably more coming together that’s going to happen here going in the future. The problem is, where is that coming together? I mean, we talk about 40% raises. You got Joe Biden saying, hey, stick with it. You deserve a major raise and getting involved in things that he doesn’t know anything about. And so the workers get kind of a bad representation there. Whereas the automaker does want to obviously stay open. They want to make profits. They want to pay the workers a fair wage, which is probably not currently where the wage is. But to say that it’s got to be this 30, 40, 50% increase right off the bat seems a little ridiculous to me.
CAVUTO: You know, all of this on the same day we learn the jobs in September were just soaring, 336,000, about double what most thought it would be. And virtually all sectors of the economy were contributing to it. Now, early on, Scott, it was fascinating because the markets were tanking on the notion that this seals more fed hikes and higher interest rates. And that indeed was the case for much of the trading day. Then it kind of reversed itself to the point that rates came off. Their highs still very high and the Dow Jones industrials finished ahead about 208 points or so. What did you make of that flip reaction and why the flip?
MARTIN: It was a great reaction. I was happy to see it. I’ve been waiting for a reaction like this. We’ve talked about this on Cavuto coast to coast on Fox Business, about when this reaction was coming. Maybe it came to roost today and maybe this is the start of a change here. But Neil, you mentioned something funny to me. You talked about rates being high and staying high. There’s a friend of mine that I’m on TV with a lot that actually bought a home in the 70s that was getting a deal at, say, 15 or maybe, what, 16% on his home when he first got his starter home.
CAVUTO: Thirteen and a half percent, young man.
MARTIN: Even better deal than I thought.
CAVUTO: Long before you were a speck in your parent’s eyes.
MARTIN: Even an apple in somebody’s eye and maybe still not but right how about that for a great deal. But nowadays people are so used to the 0% deals, 2%, 4%, six, seven, eight. Feels like a freak out session. So the market needs to settle down. We need to take a little bit of a chill pill, a little bit of a calmness here and realize that rates that stay up at these levels are okay as long as they don’t go significantly higher.
CAVUTO: Having said that, the president was commenting, you know, on the report, it’s great biodynamics is working all of this. Most people know right now we’ve made this the better off financially than they were before. What did you think of that?
MARTIN: That doesn’t sound like what I’m hearing a lot of the time. I mean, a lot of folks are maybe they’re okay financially. I wouldn’t say they’re better off. But I’ll tell you what, they’re more worried than they’ve ever been. They look around, they walk around, they feel around. And it’s not the greatest situation that we had, say, when Trump was in office or when he was vacated. So there’s certainly things that have worked at times for Joe Biden. But my goodness, of late, there’s been a nasty streak there, whether it’s immigration, whether it’s by economics itself, whether it’s even involvement in this UAW strike. It seems like he’s off base here and it looks like it’s getting worse.
CAVUTO: You know, you might be hipper and cooler, smarter, better looking. But I am a seasoned young man that not old, just seasoned. I want you to be aware of that. I have not.
MARTIN: You’re very seasoned. And Neil, tis the season for you, my friend.
CAVUTO: Thank you very much.
MARTIN: And I want to join you at that lunch at the border. By the way, if you’re not going to take that offer, I’m taking it.
CAVUTO: All right. Thank you. Very good having you, Scott Martin.
