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

ASML. Solid Q2 But New Bookings Significantly Down As COVID-19 Clouds Medium Term Outlook.

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

Remember the Lehman Crisis? The failure of Lehman Brothers marked the start of the Great Financial Crisis that destabilized and almost brought down the global financial system.What we are seeing is a Lehman Crisis of a different sort. The Lehman Crisis of 2008 was characterized by financial institutions unwilling to lend to each other and banking system liquidity seized up.Today’s version of the Lehman Crisis is characterized by countries and regions in lockdowns and the propensity of individuals or groups to increase their social distance, either owing to quarantine or fear. This is leading to both supply and demand shocks. It is a supply shock because production and transportation are seizing up, which is leading to a collapse in global trade. It is also a demand shock because when social distance rises it leads to a collapse in the demand for goods and services.We believe the global economy is undergoing a period of stress that will take some time to resolve. Asset prices are likely to be highly volatile for the next few months until the full extent of the uncertainty is resolved. In the short run, the stock market is extremely oversold and washed out. A relief rally and climactic price reversal can happen at any time. However, we expect any rally would be followed by re-tests of the old lows, which may not necessarily be successful.Investment-oriented accounts should be minimizing risk and aim for asset allocations with below-average equity risk. We reiterate our call to overweight emerging market equities and commodities because the market has already embedded low expectations for their outlook, and underweight U.S. equities because of their valuation risk.

Remember the Lehman Crisis? The failure of Lehman Brothers marked the start of the Great Financial Crisis that destabilized and almost brought down the global financial system.What we are seeing is a Lehman Crisis of a different sort. The Lehman Crisis of 2008 was characterized by financial institutions unwilling to lend to each other and banking system liquidity seized up.Today’s version of the Lehman Crisis is characterized by countries and regions in lockdowns and the propensity of individuals or groups to increase their social distance, either owing to quarantine or fear. This is leading to both supply and demand shocks. It is a supply shock because production and transportation are seizing up, which is leading to a collapse in global trade. It is also a demand shock because when social distance rises it leads to a collapse in the demand for goods and services.We believe the global economy is undergoing a period of stress that will take some time to resolve. Asset prices are likely to be highly volatile for the next few months until the full extent of the uncertainty is resolved. In the short run, the stock market is extremely oversold and washed out. A relief rally and climactic price reversal can happen at any time. However, we expect any rally would be followed by re-tests of the old lows, which may not necessarily be successful.Investment-oriented accounts should be minimizing risk and aim for asset allocations with below-average equity risk. We reiterate our call to overweight emerging market equities and commodities because the market has already embedded low expectations for their outlook, and underweight U.S. equities because of their valuation risk.

A Lehman Crisis of A Different Sort