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

Thematic (Sector/Industry)

United states / Thematic (Sector/Industry)

The velocity and ferociousness of the recent U.S. equity market weakness caught even cautious investors like us by surprise. Our social media feed has been filled with extreme bearishness. Opinions are now becoming bifurcated. Either the decline is the signal of something big or the fall in stock prices represents a buying opportunity for fundamentally oriented investors. It is impossible to make a buy, hold or sell decision without some understanding of what the market is discounting. Further analysis reveals that investors are discounting only a mild U.S. slowdown in 1H 2019, but no recession. From a technical perspective, both the U.S. and global markets have violated well-defined uptrend lines, just as they did in 2015 and 2007. It remains an open question as to whether the trend line breakdowns will result in just a mild pullback, or a deeper bear market.From a technical perspective, we would look for conditions when the market stops responding to bad news. One example can be found during the eurozone and Greek Crisis of 2011. During the summer of 2011, the eurozone was at risk of breaking apart, and European leaders were having almost weekly summits on how to solve the problem. At times, it seemed that Europe was leaderless, and no one was in charge. The crisis lifted after the ECB unveiled its LTRO program to backstop the banking system in order to buy time for member states to engage in structural reform. Sometime during that process, the market stopped falling on bad news. We are not there yet.Our recommendation is to monitor the evolution of financial risk, as well as the evolution of investor psychology, in order to determine the timing of a market bottom

The velocity and ferociousness of the recent U.S. equity market weakness caught even cautious investors like us by surprise. Our social media feed has been filled with extreme bearishness. Opinions are now becoming bifurcated. Either the decline is the signal of something big or the fall in stock prices represents a buying opportunity for fundamentally oriented investors. It is impossible to make a buy, hold or sell decision without some understanding of what the market is discounting. Further analysis reveals that investors are discounting only a mild U.S. slowdown in 1H 2019, but no recession. From a technical perspective, both the U.S. and global markets have violated well-defined uptrend lines, just as they did in 2015 and 2007. It remains an open question as to whether the trend line breakdowns will result in just a mild pullback, or a deeper bear market.From a technical perspective, we would look for conditions when the market stops responding to bad news. One example can be found during the eurozone and Greek Crisis of 2011. During the summer of 2011, the eurozone was at risk of breaking apart, and European leaders were having almost weekly summits on how to solve the problem. At times, it seemed that Europe was leaderless, and no one was in charge. The crisis lifted after the ECB unveiled its LTRO program to backstop the banking system in order to buy time for member states to engage in structural reform. Sometime during that process, the market stopped falling on bad news. We are not there yet.Our recommendation is to monitor the evolution of financial risk, as well as the evolution of investor psychology, in order to determine the timing of a market bottom

What Just Happened In The Stock Market?