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>A review of technical and sentiment conditions shows that stock prices are setting up for a sustained advance.</li>
<li>The combination of strong momentum, good breadth and skeptical sentiment points to higher stock prices.</li>
<li>Key risks are evidence of a disturbing relative strength by defensive sectors and an upcoming CPI report that could upend the bullish narrative.</li>
</ul>


A review of technical and sentiment conditions shows that stock prices are setting up for a sustained advance.
The combination of strong momentum, good breadth and skeptical sentiment points to higher stock prices.
Key risks are evidence of a disturbing relative strength by defensive sectors and an upcoming CPI report that could upend the bullish narrative.


<ul>
<li>We believe AI is overhyped in the short run and underhyped in the long run.</li>
<li>Recent instances of earnings report reactions of stocks in the AI ecosystem indicate excessive frothiness and even AI bellwethers like NVDIA have begun to consolidate sideways.</li>
<li>A St. Louis Fed study of the pace of technology adoption suggests that AI adoption will undergo a long cycle like the PC, so investors need to be patient.</li>
</ul>


We believe AI is overhyped in the short run and underhyped in the long run.
Recent instances of earnings report reactions of stocks in the AI ecosystem indicate excessive frothiness and even AI bellwethers like NVDIA have begun to consolidate sideways.
A St. Louis Fed study of the pace of technology adoption suggests that AI adoption will undergo a long cycle like the PC, so investors need to be patient.


<ul>
<li>A review of the main short-term drivers of stock prices, namely interest rates, geopolitical risk and the earnings outlook, are all pointing to higher stock prices.</li>
<li>Short-Term technical indicators such as breadth and momentum are also bullish.</li>
<li>The key risk to this bullish outlook is a continued deterioration in banking system liquidity that could pose headwinds to stock prices.</li>
</ul>


A review of the main short-term drivers of stock prices, namely interest rates, geopolitical risk and the earnings outlook, are all pointing to higher stock prices.
Short-Term technical indicators such as breadth and momentum are also bullish.
The key risk to this bullish outlook is a continued deterioration in banking system liquidity that could pose headwinds to stock prices.


Quantitative Analysis

<ul>
<li>Should you buy value or growth stocks? We present an analytical framework for analyzing growth and value within a capital intensity context.</li>
<li>While growth has outperformed value for prolonged periods, we believe cyclically sensitive value stocks present outperformance opportunities over the medium term.</li>
<li>We recommend investors maintain an overweight position in value, a marketweight position in growth and an underweight position in defensive sectors.</li>
</ul>


Should you buy value or growth stocks? We present an analytical framework for analyzing growth and value within a capital intensity context.
While growth has outperformed value for prolonged periods, we believe cyclically sensitive value stocks present outperformance opportunities over the medium term.
We recommend investors maintain an overweight position in value, a marketweight position in growth and an underweight position in defensive sectors.


Value or Growth? Here's an Analytical Framework

Technical Analysis

Technology Select Sector SPDR / Technical Analysis

Technology Select Sector SPDR Fund is an exchange-traded fund incorporated in the USA. The ETF tracks the performance of The Technology Select Sector Index. The ETF holds large and mid-cap technology stocks. Its largest investment allocation is in the United States. The ETF weights the holdings using a market capitalization methodology.

<ul>
<li>Big Tech has been lagging the market since February and the relative performance reset is nearing an end. The overall stock market is undergoing a bottoming process.</li>
<li>Investment-Oriented accounts should be accumulating positions at these levels, but should be prepared for some near-term choppiness.</li>
<li>Tactically, we are inclined to overweight value over growth stocks for short-term performance.</li>
</ul>


Big Tech has been lagging the market since February and the relative performance reset is nearing an end. The overall stock market is undergoing a bottoming process.
Investment-Oriented accounts should be accumulating positions at these levels, but should be prepared for some near-term choppiness.
Tactically, we are inclined to overweight value over growth stocks for short-term performance.


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

Five Reasons to Be Bullish

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Beware of the AI Hangover

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What's Driving Stock Prices?

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Value or Growth? Here's an Analytical Framework

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Time to Tiptoe Back Into Big Tech?

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