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. 

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Cross-Asset & Quantitative Research

Cross Asset Strategy

<ul>
<li>What happens when an ominously sounding Hindenburg Omen occurs when the market is oversold? The notoriously unreliable Omen is said to have called “ten of the last three market corrections”.</li>
<li>The market’s reaction to the FOMC decision added to the risk-off market tone. The Fed marked down the number of 2025 quarter-point rate cuts from four to two.</li>
<li>Four of the five components of our Bottom Spotting Model have flashed buy signals. Two or more simultaneous buy signals have been good long entry points for traders.</li>
</ul>


What happens when an ominously sounding Hindenburg Omen occurs when the market is oversold? The notoriously unreliable Omen is said to have called “ten of the last three market corrections”.
The market’s reaction to the FOMC decision added to the risk-off market tone. The Fed marked down the number of 2025 quarter-point rate cuts from four to two.
Four of the five components of our Bottom Spotting Model have flashed buy signals. Two or more simultaneous buy signals have been good long entry points for traders.


<ul>
<li>The continued lack of disinflationary progress in the November CPI and PPI reports is setting up conditions for a hawkish rate cut at the December meeting.</li>
<li>The big question is how this affects overall risk appetite. Elections of new presidents often set up a honeymoon period characterized by small-cap outperformance, which has been lacking this year.</li>
<li>Our base case is a rally into year-end, but we would like to see confirmation from better relative performance of high-beta small-cap stocks</li>
</ul>


The continued lack of disinflationary progress in the November CPI and PPI reports is setting up conditions for a hawkish rate cut at the December meeting.
The big question is how this affects overall risk appetite. Elections of new presidents often set up a honeymoon period characterized by small-cap outperformance, which has been lacking this year.
Our base case is a rally into year-end, but we would like to see confirmation from better relative performance of high-beta small-cap stocks


<ul>
<li>In the wake of Trump’s electoral win, market participants have given him the benefit of the doubt and embraced a honeymoon.</li>
<li>Expectations for equity returns are high and sentiment is becoming frothy.</li>
<li>Risks are rising, but we would tactically monitor if market technical and sentiment conditions progress in January.</li>
</ul>


In the wake of Trump’s electoral win, market participants have given him the benefit of the doubt and embraced a honeymoon.
Expectations for equity returns are high and sentiment is becoming frothy.
Risks are rising, but we would tactically monitor if market technical and sentiment conditions progress in January.


<ul>
<li>Now that Bitcoin has exceeded the psychologically important 100,000 mark, it is becoming evident that the FOMO risk-on stampede is in full force.</li>
<li>Our review of market internals leads us to conclude that the risk-on FOMO stampede that’s driving the animal spirits is on the verge of becoming exhausted.</li>
<li>Our base case calls for a brief period of consolidation or shallow weakness, followed by a rally into year-end.</li>
</ul>


Now that Bitcoin has exceeded the psychologically important 100,000 mark, it is becoming evident that the FOMO risk-on stampede is in full force.
Our review of market internals leads us to conclude that the risk-on FOMO stampede that’s driving the animal spirits is on the verge of becoming exhausted.
Our base case calls for a brief period of consolidation or shallow weakness, followed by a rally into year-end.


Bitcoin 100K: Buy or Fade the Animal Spirits?

<ul>
<li>This year was one of American exceptionalism and asset return domination, led by the leadership of the Magnificent Seven.</li>
<li>. We believe Magnificent Seven leadership is likely to fade in 2025.</li>
<li>We expect that 2025 will be a year of transition from growth to value, large caps to small caps and paper to hard assets.</li>
</ul>


This year was one of American exceptionalism and asset return domination, led by the leadership of the Magnificent Seven.
. We believe Magnificent Seven leadership is likely to fade in 2025.
We expect that 2025 will be a year of transition from growth to value, large caps to small caps and paper to hard assets.


Investing During an Era of American Exceptionalism

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

A Hindenburg Omen in an Oversold Market

What happens when an ominously sounding Hindenburg Omen occurs when the market is oversold? The notoriously unreliable Hindenburg Omen is said to...

Cam Hui

Could A Hawkish Rate Cut Rattle Markets?

The continued lack of disinflationary progress in the November CPI and PPI reports is setting up conditions for a hawkish rate cut at the December...

Cam Hui

The Public Embraces the Trump Honeymoon

In the wake of Trump’s electoral win, market participants have given him the benefit of the doubt and embraced a honeymoon. Expectations for equity...

Cam Hui

Bitcoin 100K: Buy or Fade the Animal Spirits?

Our base case calls for a brief period of stock market consolidation or shallow weakness, followed by a rally into year-end.

Cam Hui

Investing During an Era of American Exceptionalism

2024 was a year of American exceptionalism and asset return domination, led by the leadership of the Magnificent Seven. We believe Magnificent...

Cam Hui