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

WTI Rally Target with Energy Picking up Slack

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

We received considerable feedback from last week’s report (see <a href="https://www.smartkarma.com/insights/how-to-outperform-by-50-250-over-the-next-2-3-years" target="_blank" rel="noopener">How to Outperform by 50–250% Over 2-3 Years</a>), mostly related to gold and energy stocks.We conclude that both gold and energy stocks have bright futures over the next 2–3 years. We estimate that gold prices could beat U.S. large-cap growth stocks by about 100% over this period, and we would favour bullion over gold stocks. The upside target for energy stocks is a little bit tricky owing to their declining fundamentals and falling demand from ESG investing. The upside relative performance target is wider at 25–300% for this sector.

We received considerable feedback from last week’s report (see How to Outperform by 50–250% Over 2-3 Years), mostly related to gold and energy stocks.We conclude that both gold and energy stocks have bright futures over the next 2–3 years. We estimate that gold prices could beat U.S. large-cap growth stocks by about 100% over this period, and we would favour bullion over gold stocks. The upside target for energy stocks is a little bit tricky owing to their declining fundamentals and falling demand from ESG investing. The upside relative performance target is wider at 25–300% for this sector.

A Focus on Gold and Energy