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

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

Now that stock prices have recovered from their March lows to all-time highs, it’s time to admit that we were wrong about our excess cautiousness. We present a new framework for analyzing the stock market. While the new framework is useful for explaining why the major U.S. market indices have reached fresh highs, it does not necessarily have bullish implications.That’s because both the market and economy are undergoing K-shaped and two-paced rebounds. These bifurcated recoveries are creating imbalances that will have to be resolved at some point in the future. One possibility is the formation of a NASDAQ bubble, which would end in a disorderly market crash. The other scenario postulates an orderly convergence between Wall Street and Main Street fundamentals, where we penciled in a re-test of the March lows as a downside objective.Tactically, investors should watch the NASDAQ 100 and global regional indices for signs of changes in market leadership. Monitoring these indicators will give an idea of how the market is evolving within these two disparate scenarios.

Now that stock prices have recovered from their March lows to all-time highs, it’s time to admit that we were wrong about our excess cautiousness. We present a new framework for analyzing the stock market. While the new framework is useful for explaining why the major U.S. market indices have reached fresh highs, it does not necessarily have bullish implications.That’s because both the market and economy are undergoing K-shaped and two-paced rebounds. These bifurcated recoveries are creating imbalances that will have to be resolved at some point in the future. One possibility is the formation of a NASDAQ bubble, which would end in a disorderly market crash. The other scenario postulates an orderly convergence between Wall Street and Main Street fundamentals, where we penciled in a re-test of the March lows as a downside objective.Tactically, investors should watch the NASDAQ 100 and global regional indices for signs of changes in market leadership. Monitoring these indicators will give an idea of how the market is evolving within these two disparate scenarios.

Fresh S&P 500 Highs? What Now?