Cross-Asset Strategist & Quantitative Analyst, Pennock Idea Hub

Cam Hui

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

Cross Asset Strategy

<ul>
<li>The tactical bullish set-up that we outlined last week has triggered a buy signal.</li>
<li>Diverse leadership by financial, industrial and technology stocks points to further gains in stock prices.</li>
<li>Investors should be aware of the key risk of earnings disappointment during Q3 earnings season, and signs of resurgent inflation that puts upward pressure on interest rates.</li>
</ul>


The tactical bullish set-up that we outlined last week has triggered a buy signal.
Diverse leadership by financial, industrial and technology stocks points to further gains in stock prices.
Investors should be aware of the key risk of earnings disappointment during Q3 earnings season, and signs of resurgent inflation that puts upward pressure on interest rates.


Some Preliminary Thoughts on Q3 Earning Season

<ul>
<li>U.S. household equity allocations are becoming extended relative to their own history, which warns of a challenging long-term return outlook.</li>
<li>Demographically adjusted allocations are less extended and similar episodes have resolved in either minor pullbacks or sideways consolidations.</li>
<li>Equity valuations are stretched compared to bonds and the long-term outlook will depend on the future advances in productivity.</li>
</ul>


U.S. household equity allocations are becoming extended relative to their own history, which warns of a challenging long-term return outlook.
Demographically adjusted allocations are less extended and similar episodes have resolved in either minor pullbacks or sideways consolidations.
Equity valuations are stretched compared to bonds and the long-term outlook will depend on the future advances in productivity.


<ul>
<li>Volatility in economic data feeds through to bond market volatility because of the Fed’s increasing focus on data dependency.</li>
<li>Wobbles in earnings estimate growth at the start of Q3 earnings season is leading to uncertainty in stock prices.</li>
<li>We believe these sources of volatility will resolve themselves in a benign manner.</li>
</ul>


Volatility in economic data feeds through to bond market volatility because of the Fed’s increasing focus on data dependency.
Wobbles in earnings estimate growth at the start of Q3 earnings season is leading to uncertainty in stock prices.
We believe these sources of volatility will resolve themselves in a benign manner.


Near-Term Volatility Ahead, But Don't Fret

<ul>
<li>Stock market internals are call for near-term caution but intermediate-term bullishness.</li>
<li>Election uncertainty, along with cross-currents such as the stronger-than-expected CPI report is creating market volatility.</li>
<li>But market internals reveal a strong bull trend and a near-oversold condition.</li>
</ul>


Stock market internals are call for near-term caution but intermediate-term bullishness.
Election uncertainty, along with cross-currents such as the stronger-than-expected CPI report is creating market volatility.
But market internals reveal a strong bull trend and a near-oversold condition.


<ul>
<li>Part of investing is proper risk management and the pricing of risk.</li>
<li>While war in the Middle East is not our base-case scenario, we believe the odds of an Israeli attack on Iran are higher than the market expects.</li>
<li>The market is underpricing the risk of war and investors should be aware of this tail risk and position themselves accordingly.</li>
</ul>


Part of investing is proper risk management and the pricing of risk.
While war in the Middle East is not our base-case scenario, we believe the odds of an Israeli attack on Iran are higher than the market expects.
The market is underpricing the risk of war and investors should be aware of this tail risk and position themselves accordingly.


Thinking the Unthinkable: Israel-Iran War

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.

Cam Hui
Cross-Asset Strategist & Quantitative Analyst
• Pennock Idea Hub

Some Preliminary Thoughts on Q3 Earning Season

The tactical bullish set-up that we outlined last week has triggered a buy signal. Diverse leadership by financial, industrial and technology...

Cam Hui

An Ominous Sign for U.S. Equity Returns?

U.S. household equity allocations are becoming extended, which warns of a challenging long-term return outlook. Demographically adjusted...

Cam Hui

Near-Term Volatility Ahead, But Don't Fret

Volatility in economic data feeds through to bond market volatility because of the Fed’s data dependency. But we believe these sources of...

Cam Hui

A Time for Bullish Patience

Stock market internals are call for near-term caution but intermediate-term bullishness. Election uncertainty, along with cross-currents such as...

Cam Hui

Thinking the Unthinkable: Israel-Iran War

Part of investing is proper risk management and the pricing of risk. While war is not our base-case scenario, we believe the odds of an Israeli...

Cam Hui