Program: Making Money with Charles Payne
Date: 8/5/2021
Station: Fox News Channel
Time: 2:00PM

CHARLES PAYNE: Now i’d like to bring up Fox Business contributor from Kingsview Wealth Management, Scott Martin. Scott, I want to pick up on that conversation with gold. You’ve been in gold here. You talked about being long. It it’s kind of stalled a little bit. Are you, though, convinced it still has the ability to be a hedge against inflation in a store of value?

SCOTT MARTIN: Yeah, and Charles, we also like it because it’s not a bond position and it’s not an equity position. So if you’re adding gold to your portfolio or looking to do so, I think you get a check out the correlation value that it presents to a portfolio. Because you’re right these days, with so much uncertainty ahead, both in the economy and what with D.C. and with the Fed is going to do going forward, as you were just discussing, gold can actually come in handy in either of those times when either we’re stimulating or pulling back stimulus because you’ll see people flee the volatility of the equity markets and go into gold as a solution.

PAYNE: You’ve expressed at least earlier this year, you expressed some concern about the junk bond yields, you were worried about how low they were, they’ve only got lower. What does this say? I mean, what’s the message here and what kind of adjustments, if any, have you made because of this in your portfolio?

MARTIN: Well, we still own junk bonds, but you’re right. I mean, the yield on junk bonds is meager at best. And so it’s just a liquidity rush, really, Charles. I mean, people investors are out there seeking any yield they can find anywhere in the bond market. So that to me is another kind of indicator of things, just getting a little bit overcooked here on the bond side. So when you’re looking at yields, seeing the 10 year Treasury, as you were just talking, I think we’ve probably seen the lows or come pretty close to him for the year and we expect yields to start rising here in the next few months.

PAYNE: Last time I saw you, you were getting a little bit more aggressive on the equity side were, you know, by the way, where where are you most concentrated, your biggest investments yet?

MARTIN: Consumer discretionary, mainly, Charles, as the reopening keeps happening, the consumers in the best shape they’ve been in many, many years. So we like the consumer discretionary names, the Amazons of the world. But so far, yes, we’ve been adding to things like I mentioned last week, that drop on, say, good news. We’ve had a slew of earnings reports come out that have been relatively good. Things like Apple and other technology companies have pulled back some. We’ve been adding on those dips because the long term story is still in place for a lot of these companies. And on short term weakness, that’s when you got to get in and add to those positions.

PAYNE: Hashtag buy the dip, I’m with you, my man, I think people are nuts. I don’t know who’s selling it. It’s just the computers, the algorithms. But if you are selling Apple and Amazon and those kind of earnings, you know you’ve lost it. Hey, Scott, thanks so much. Appreciate it.