This week, our guest is Kenny Polcari, the dynamic host of ‘The Weiss Investor’ podcast, a new series available on all the country’s most popular podcast platforms.
Weiss Ratings Financial News Anchor Jessica Borg has more ... you can watch the video segment or continue reading for the full transcript.
Jessica Borg (narration): He’s been a professional trader for nearly four decades.
Kenny Polcari is now the host of Weiss Ratings new podcast, The Weiss Investor.
JB: Tell us about the podcast and the shape that they often take.
Kenny Polcari: It is a podcast based around financial services, but it is not a trading podcast — “I’m buying this, I’m selling that, I’m doing this.” It’s much broader.
I’ve interviewed Sue Herrera from CNBC, Morgan Brennan from CNBC — as women financial journalists — and we discuss their journey and how they got there.
JB (narration): He’s discussed the explosion of non-fungible tokens (NFTs) as a new asset class, with Weiss Crypto analyst Joel Kruger … along with the growing mainstream adoption of Bitcoin (BTC).
And recently, he interviewed Malcolm Ethridge — a podcast host and certified financial planner — for his perspective.
KP: I think what’s really interesting about talking to some of these people is they’re all human beings and they also have a story. Everyone’s story is different … how they ended up here, and opportunities they had and decisions they made that drove them here.
JB (narration): Kenny has his own story about how he ended up in finance.
KP: When I was in college, I was in school in Washington, D.C., because I thought I wanted to be a politician, a lobbyist, the President of the United States! Thank goodness that didn’t happen.
JB (narration): In the summer of 1980, he had the chance to be on the floor of the New York Stock Exchange.
KP: Well, it changed the course of my life … especially during the ‘80s and ‘90s when there were 5,500 Type A personalities that ran around the room screaming and yelling everything!
It was the most electrifying place in the world, and it fed right into my personality.
JB (narration): Today, you can catch Kenny’s spirited stock market analysis across social media.
In the new year, the Fed will likely speed up its tapering of asset purchases … and economists project interest rates could be raised several times to deal with high inflation.
JB: You’ve been talking a lot about the turbulence you see in 2022.
KP: I think you’re going to see the Fed come out and be more aggressive in terms of the talk of interest rate increases, potentially stopping tapering — not tapering it down, but stopping it.
I think we borrowed in future performance, that’s what I think … so I think the correction is going to come in January, February.
JB (narration): So, how should investors prepare?
KP: It depends on who you are as an investor. There are day trader types that are absolutely champing at the bit for it to be more volatile because that’s how they make money.
I’m an investor, a long-term investor. I don’t day-trade my accounts. I buy stuff that I like that has a good thesis, a good record, good earnings calls, good outlook, good guidance, and I put them in my portfolio.
For instance, I own Apple (Nasdaq: AAPL) and Microsoft (Nasdaq: MSFT). They’re two names in my portfolio.
I’m not selling my Apple and Microsoft. I don’t care if the market crashes 15%. I’ll buy more Apple and Microsoft! Why? Because the thesis in Apple and Microsoft won’t have changed. Just because the market corrects — because there’s going to be a change of policy — doesn’t mean they destroyed the Apple story or the Microsoft story.
JB: What are some investments that are appealing to you in this climate?
KP: I’m long now on the exchange-traded fund (ETF) ProShares Short S&P500 (NYSE: SH).
You’re buying it because you’re expecting the market to go down … so as the market goes down, that ETF will increase in value.
And it will blunt and offset the decrease in the individual names I own.
JB (narration): He’s a fan of names that may not be flashy but are effective.
KP: Utilities have now taken a new role in my portfolio … and consumer staples, which are things that you need. You need toothpaste and mouthwash and soap and toilet paper — all the things you need, you should add to your portfolio.
So, it’s Kellogg Company (NYSE: K), it’s The Procter & Gamble Company (NYSE: PG), Johnson & Johnson (NYSE: JNJ) and for two reasons: They’re boring and they’re big Americana market cap stocks. Guess what?
Boring is good in a turbulent environment, or what you expect to be a turbulent environment!
I own Ford Motor Company (NYSE: F).Guess what? I’m up 120% in my Ford.
JB (narration): He’s all for value stocks in 2022.
KP: Buy the stuff that’s solid, that’s good, that’s going to help you sleep at night.
And for me, owning JPMorgan Chase & Co. (NYSE: JPM), [Zions Bancorporation’s (Nasdaq: ZION)] National Association, Bank of America (NYSE: BAC) and Ford Motor Company lets me sleep at night.
JB (narration): Aside from finance, Kenny is also passionate about food.
JB: So, how did you get into cooking? How did this love for food and cooking form?
KP: I’m the middle of five kids from a Boston Italian family … let’s just start with that!
Both grandmothers and my mother, I would just watch, because I cook by feel. When I give you a recipe, I give the ingredients, but I don’t say, “Use a quarter-tablespoon of pepper.” I don’t do that. I just go around, and I taste.
When you cook for somebody and you invite them into your personal space, people really appreciate that intimacy and that experience … especially if you do it well.
JB (narration): So,here’s to serving up good food and wise investments in the new year.
JB: Financial analyst Kenny Polcari, great speaking with you. Happy New Year, my friend.
KP: Thank you. Happy New Year to you!
Best wishes,
The Weiss Ratings Team
