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

Taper Talk – Will The Global Liquidity Boom End With A Whimper Or A Bang?

Global QE: Is The US Fed About to Tighten?

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

<p>Jerome Powell is turning out to be the Un-Volcker Fed Chair. Paul Volcker wrung all the inflation expectations out of the system and convinced everyone that the Fed is an inflation hawk. By contrast, Jerome Powell is attempting a mirror image policy of convincing everyone the Fed is an inflation dove. For investors, this has several implications:</p>
<ul>
<li>The bond market’s inflation expectations are too high, expect lower yields, especially at the short end of the yield curve.</li>
<li>Barring any pandemic hiccups, this is a V-shaped recovery. Small caps perform especially well in such environments.</li>
<li>Similarly, cyclical and value exposure is expected to outperform.</li>
</ul>

Jerome Powell is turning out to be the Un-Volcker Fed Chair. Paul Volcker wrung all the inflation expectations out of the system and convinced everyone that the Fed is an inflation hawk. By contrast, Jerome Powell is attempting a mirror image policy of convincing everyone the Fed is an inflation dove. For investors, this has several implications:

The bond market’s inflation expectations are too high, expect lower yields, especially at the short end of the yield curve.
Barring any pandemic hiccups, this is a V-shaped recovery. Small caps perform especially well in such environments.
Similarly, cyclical and value exposure is expected to outperform.


How Powell "The Un-Volcker" Is Remaking The Fed