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

Risk Triggers that Would Lead an Equity Pullback

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

Did anyone notice the upside breakout in the global equity indices? The breakout was not only evident in the U.S., but it was also broad and global in nature. This is an unambiguously bullish signal for equities. Investors with intermediate- and long-term horizons should buy the breakout.We would like to reconcile the recession risk raised by a number of readers. While a number of indicators, such as the recent yield curve inversion, tanking CEO confidence, falling ISM and Markit PMIs and so on, are signaling recession, how could we possibly be equity bullish in the face of these risks?A review of U.S. recession finds that the household sector is strong, monetary policy is easy and supportive of growth, but the corporate sector is struggling. We conclude that while this may point to a slowdown, no recession is in the cards. In conclusion, global markets are staging coordinated upside breakouts. These are unambiguous signs of a global rebound in growth. Recession risks are low. This is likely the start of a new leg in an equity bull.

Did anyone notice the upside breakout in the global equity indices? The breakout was not only evident in the U.S., but it was also broad and global in nature. This is an unambiguously bullish signal for equities. Investors with intermediate- and long-term horizons should buy the breakout.We would like to reconcile the recession risk raised by a number of readers. While a number of indicators, such as the recent yield curve inversion, tanking CEO confidence, falling ISM and Markit PMIs and so on, are signaling recession, how could we possibly be equity bullish in the face of these risks?A review of U.S. recession finds that the household sector is strong, monetary policy is easy and supportive of growth, but the corporate sector is struggling. We conclude that while this may point to a slowdown, no recession is in the cards. In conclusion, global markets are staging coordinated upside breakouts. These are unambiguous signs of a global rebound in growth. Recession risks are low. This is likely the start of a new leg in an equity bull. 

Buy the Breakout, Recession Risk Limited