- 2024-07-05
- Posted by: kimsite
- Categories: Commentary, Insights
Click here to listen to the full interview.
KELLY O’GRADY: Joining me now is Kingsview Wealth Management CIO and Fox Business contributor Scott Martin. Alright, Scott, thanks for being on the program today. I’ve got to get your reaction to Jeff’s report. I find this so interesting. On one side, you’ve got potentially higher consumer prices for electricity, but do you think this is the right call for the tech sector that needs this energy with very few outages, especially as everyone’s turning to AI?
SCOTT MARTIN: Yes, it might be, Kelly. If you look at the trends in AI, there’s certainly going to be more demand for power, and as Jeff pointed out, it’s a great source of power for these companies. The problem is, Kelly, as you know, most states in the United States, only a handful of them generate a lot of their electricity from nuclear power, say more than 30%. So, you’ve got to get these states on board to start generating that kind of power and then get it out to the companies that need it. There’s some legislation behind that. Obviously, there’s push and pull in Congress over fossil fuels. Chuck Schumer is using all the gasoline and propane he can on his grilling masterpieces that he’s put on the internet. So, there are a lot of fights over power that are starting to be at the forefront of our minds because the AI boom is so strong.
KELLY O’GRADY: And I think one of the big pieces of pushing away from nuclear and towards green has been the Biden administration’s agenda. So, I’m going to pivot towards the Biden campaign here because I do want to get your take on what might happen tonight. They’re doing their best to put the debate in the rearview mirror. The idea of backing out this weekend is make or break for President Biden. That interview tonight is make or break. Do you think the markets are going to react at all come Monday morning, or is the speculation about the president’s candidacy already baked in?
SCOTT MARTIN: Well, I’ll tell you, it already feels like a break to me. So yes, I don’t think tonight is going to save him. I mean, does he get do-overs? Does he get coin flips? Who knows? If he doesn’t like the question, can we swap words out and change the answers? The funny thing is, Kelly, I think that’s what’s happened with the market so far. I was talking about this with Neil earlier this week. The markets seem to be adopting or expecting, or certainly anticipating, Trump pulling this one out, or at least somebody other than Biden on the Democratic side. You mentioned the Green New Deal and things like that not working out. Bidenomics, which are not talked about anymore, ironically, Biden’s economic council, Brian Deese, and those folks are never heard from anymore. Yet, the economy is strong yet weak. It’s just a very strange situation where I think the markets, to your question, are already expecting there to be a sea change of events here, maybe both in Congress and certainly in the White House. And I think that’s why, by and large, investors should be pretty excited about stocks.
KELLY O’GRADY: Yeah, well, I mean, obviously, we’re seeing that bull market. I’ve only got about 10 seconds left, Scott, so I’m going to put you on the hook for an answer here. We got that jobs data today. Does the Fed cut once, twice, or none by the end of the year?
SCOTT MARTIN: I will sum it up in one word, Kelly. The Fed does nothing the rest of the year, and that’s what you should want because rates staying stable are good for markets and the economy, and it’s good for them to step away.
KELLY O’GRADY: Scott Martin, thanks for joining us today.
