- 2024-09-30
- Posted by: kimsite
- Categories: Commentary, Insights, News
Click here to listen to the full interview.
TAYLOR RIGGS: Meanwhile, take a look at the markets. Mostly a little mixed to lower, but honestly, I’m going to call this unchanged. It’s wrapping up what has been a banner September and a banner third quarter. Investors remain cautious ahead of the jobs numbers that are coming out on Friday. But you have the S&P 500 now on track for the best start to a year since 1997. This is after posting the third straight winning week, ending on Friday. Let’s discuss all of this with Scott Martin, CIO of Kingsview Wealth Management and Fox Business contributor. Talk to me about those gains. This was supposed to be a bad September, as Septembers usually are, and yet you’re seeing a great start to the year. Can this continue?
SCOTT MARTIN: Yes, I think it can, Taylor. And you know what? It’s funny how things don’t always work out the way we plan, or at least the way the experts predict. Because you’re right, we’re partying like it’s 1997, and that’s for good reason. The economy, as I’ve always said, is better than most people think. The data has been a little wishy-washy, yes, but the underlying themes in the data have largely supported stock prices. And frankly, even with an election coming up, I believe the economy is strong enough that investors and market participants are thinking, “You know what? Even as good as the economy is, maybe even Kamala Harris couldn’t mess this up.” So, I think there’s a lot to be positive about. But again, as you know my take, I’m worried that the Fed may have made a pretty big policy mistake a couple of weeks ago, and I’m concerned about how that might lead to more inflation.
BRIAN BRENBERG: So Scott, talk to me about interest rates a little bit. They made the cut, but if you look at market interest rates, they haven’t come down the way you might have expected. Is the market telling us that we’re going to have a strong economy no matter who ends up in the White House?
SCOTT MARTIN: I think so, Brian. The market seems to be suggesting that we could see inflationary trends coming back, which would steepen the yield curve. You’re right. Going into the Fed meeting, rates fell pretty sharply. They plummeted, but after the meeting, rates bounced back and have since leveled off a bit but have risen again today. So, the market is telling a bit of a different story, which should make the Fed take pause. Neil Cavuto had Austin Goolsbee on earlier, and he seemed uncertain about the Fed’s next move. I think they realize they may have overstepped this time, and they don’t want the market to become too dependent on more rate cuts, especially if, as you mentioned with Joe Lavorgna, the market is expecting a 3%+ GDP number for Q3.
JACKIE DEANGELIS: It’s starting to become clearer why they gave the market the cut they did. I don’t think they’re as clueless as people like to say. But Scott, let’s move on and talk about what investors can buy at these record levels. It’s tough to know what’s a good entry point. What are the bargains out there?
SCOTT MARTIN: Two things, Jackie, and unfortunately, they’re related to the recent hurricanes. My heart goes out to everyone affected, including a place I own in Florida that was slightly impacted. Two companies to look at when it comes to cleanup and recovery efforts are Caterpillar, which is involved in moving debris and rebuilding, and Waste Management, which handles the collection of debris after a disaster. CAT and WM are two stocks I like right now. They’re defensive names, which is important as we head into what I think will be a bumpy time. Lastly, we can’t forget Joe Biden’s speech this morning with all the coughing and throat issues he seemed to have. So, how about some Johnson & Johnson, another defensive stock that also makes cough medicine—something Joe Biden might need if he speaks again soon.
BRIAN BRENBERG: We’re all going to need it this fall, Scott. You know how it is.
SCOTT MARTIN: I’m telling you, tis the season. He’s just ahead of us as usual.
BRIAN BRENBERG: Well, if you’re cheering for the Vikings loudly, sometimes you end up with a sore throat.
SCOTT MARTIN: Did someone say 4–0, Brian?
BRIAN BRENBERG: That’s right. Thanks, Scott.
TAYLOR RIGGS:
Scott, I wore a purple suit today by accident, and Brian can’t stop teasing me.
SCOTT MARTIN:
Every Monday, Taylor. Every time.
TAYLOR RIGGS:
We’ll see, Scott. We’ll get you one of these days. Thanks so much, Scott Martin.
