John Hsin

We spoke with John Hsin, our Aerospace and Defense analyst, to find out how the terrorist attacks affected these sectors.

John Hsin got his start by assisting Scott Evans in running CREF's Growth Fund, while earning his MBA at New York University's Stern School of Business in the evenings.
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John adapted well to the volatile nature of these cyclical industries, and thrives on their challenges.Switching from the airlines to aerospace and defense was a natural." John says, "because I picked up coverage of the industry when the whole sector was really beat up, since many companies had missed their earnings numbers.
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John Hsin:Research analysts at CREF are engaged in doing primary, fundamental analysis of industries and companies.
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John Hsin: First, these are two distinct sectors that affect each other integrally in complex ways.
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John Hsin: The first sign was in March 2001, when airline industry revenues began to slump after posting a strong prior year.
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John Hsin: You can compare the airlines' downfall to the recent technology boom.Think of the industry as a big bubble filling with the hot air of corporate travel.
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John Hsin: Yes, because Bush increased spending in security and defense, Defense fared somewhat better than the Airlines.
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John Hsin: Unless there is a large fundamental increase in the revenue environment, most of the major airlines will be hard-pressed to make any money in 2002.
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John Hsin: Most definitely, yes!
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John Hsin: Aerospace is a very economically sensitive sector, but the defense area is not.
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John Hsin: The bottom line is that CREF accounts generally did not have much exposure to the sector when it went down.
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Views expressed are the individual views of John Hsin as of November 2001 and are subject to change.