Cross-Asset Strategist & Quantitative Analyst, Pennock Idea Hub

Cam Hui

Cam Hui has been professionally involved in the financial markets since 1985 in a variety of roles, both as a quantitative equity portfolio manager and as a sell-side analyst. He graduated with a degree in Computer Science from the University of British Columbia in 1980 and obtained his CFA Charter in 1989.

Cross-Asset Strategist & Quantitative Analyst

Pennock Idea Hub

We are creators of independent equity research. The Pennock Idea Hub team are veterans of the investment industry. Much of our team has spent their careers at Merrill Lynch, Deutsche Bank, RBC Capital Markets and Wood Gundy. We have taken every aspect of research back to the studs and returned to first principles. The Pennock Idea Hub marries the interests of the sell and buy side. 

We offer the best research for institutional investors by:

-Only publishing research from veteran analysts
-Eliminate the inherent conflicts of the traditional sell and buy side relationship
-Ensure our team is always accessible; collaboration with clients nurtures our collective success

Cross-Asset & Quantitative Research

Cross Asset Strategy

Rising inflation fears are all over the headlines. From a top-down perspective, inflation pressures are clearly rising.We argue that the inflation threat to equity prices is a red herring. Tax policy poses a stronger threat instead. Here are our main takeaways from our analysis:•     Worries about inflation are overblown. While some short-term supply chain bottlenecks are putting upward pressure on prices, they are transient and the Fed is not about to allow inflation to run away to 6%.•     The bigger threat to equity prices is changes to the effective tax rate in the form of a minimum corporate tax on offshore profits.•     Major losers under the Biden tax proposals are growth stocks that have offshored their IP: communication services, technology and drugs.•     Relative winners under the new tax regime are value and cyclically sensitive sectors: materials, energy and industrials.

Rising inflation fears are all over the headlines. From a top-down perspective, inflation pressures are clearly rising.We argue that the inflation threat to equity prices is a red herring. Tax policy poses a stronger threat instead. Here are our main takeaways from our analysis:•     Worries about inflation are overblown. While some short-term supply chain bottlenecks are putting upward pressure on prices, they are transient and the Fed is not about to allow inflation to run away to 6%.•     The bigger threat to equity prices is changes to the effective tax rate in the form of a minimum corporate tax on offshore profits.•     Major losers under the Biden tax proposals are growth stocks that have offshored their IP: communication services, technology and drugs.•     Relative winners under the new tax regime are value and cyclically sensitive sectors: materials, energy and industrials.

The Inflation Red Herring