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

Here are our main takeaways from the analysis of daily asset rotation using a 60/40 U.S. stock/bond mix as a benchmark for USD investors.•     The S&amp;P 500 is in the leading quadrant and shows no signs of weakness. The market is on track for a rally into year-end. The open question is whether value or growth stocks will lead the charge.•     Bond prices are in the lagging quadrant but showing signs of improvement. In particular, long Treasuries (TLT) is on the verge of rising into the improving quadrant. Much depends on the language from the FOMC meeting in the coming week.In the wake of a hawkish surprise from the Bank of Canada last week, the market began to price in an aggressive tightening cycle by global central banks as yield curves around the world flattened. Will the Fed also turn hawkish in reaction to market expectations and rising inflation pressures to pull the tightening schedule forward, or will it stay the course, which would be a dovish outcome?The Fed’s tone will also matter to equity market leadership. The value/growth relationship has been correlated to bond yields. A dovish Fed would be value bullish and a hawkish tone would be growth bullish.

Here are our main takeaways from the analysis of daily asset rotation using a 60/40 U.S. stock/bond mix as a benchmark for USD investors.•     The S&amp;P 500 is in the leading quadrant and shows no signs of weakness. The market is on track for a rally into year-end. The open question is whether value or growth stocks will lead the charge.•     Bond prices are in the lagging quadrant but showing signs of improvement. In particular, long Treasuries (TLT) is on the verge of rising into the improving quadrant. Much depends on the language from the FOMC meeting in the coming week.In the wake of a hawkish surprise from the Bank of Canada last week, the market began to price in an aggressive tightening cycle by global central banks as yield curves around the world flattened. Will the Fed also turn hawkish in reaction to market expectations and rising inflation pressures to pull the tightening schedule forward, or will it stay the course, which would be a dovish outcome?The Fed’s tone will also matter to equity market leadership. The value/growth relationship has been correlated to bond yields. A dovish Fed would be value bullish and a hawkish tone would be growth bullish.

iShares 20+ Year Treasury Bond ETF (TLT US)

Waiting for the FOMC