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

It has become evident to technical analysts that the stock market has staged a convincing upside breakout. Not only has the major global averages broken out to the upside, the monthly charts of selected indices have flashed MACD buy signals. In the past, such buy signals have indicated significant price gains, with only minor downside risk.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/105/356/original/WLSH.png?1573359397" class="editor-image img-responsive" data-smartkarma-image-id="105356"></figure>In that case, what is the upside potential for stocks? We estimate targets using a variety of technical and fundamental techniques, and arrived at some different answers.We found that price targets derived from technical analysis are highly ambitious and they call for upside potential of 25% or more. By contrast, valuation and longer-term projections point to highly subdued return expectations. Our Third Way scenario postulates that the S&amp;amp;P 500 could see a price appreciation potential of 10–13%, or 3380–3480 before suffering a downdraft of unknown magnitude.

It has become evident to technical analysts that the stock market has staged a convincing upside breakout. Not only has the major global averages broken out to the upside, the monthly charts of selected indices have flashed MACD buy signals. In the past, such buy signals have indicated significant price gains, with only minor downside risk.In that case, what is the upside potential for stocks? We estimate targets using a variety of technical and fundamental techniques, and arrived at some different answers.We found that price targets derived from technical analysis are highly ambitious and they call for upside potential of 25% or more. By contrast, valuation and longer-term projections point to highly subdued return expectations. Our Third Way scenario postulates that the S&amp;amp;P 500 could see a price appreciation potential of 10–13%, or 3380–3480 before suffering a downdraft of unknown magnitude.

How Far Can The S&P 500 Rise?