About MTM.
MTM has been built by a small team of ex-financial market professionals with over 50 years' experience. The aim is to make a professional product available to the mass market at a price that anybody could afford.
Our two core elements:
A portfolio assistant that helps the investor easily build and evaluate their investment portfolio. It provides key headline number for each investment, enables easy monitoring of performance, manages sector exposure, and provides a trader's calendar that automatically updates expected result dates for portfolio holdings. It also allows for the creation of watchlists and provides financial and comparative analysis.
The research suite includes a range of tools to explore and interrogate market returns. These tools include the Research tool itself, the stock screener, market history page, and overview page for highlights, summaries and news. Within a handful of clicks users can find stocks which match their investment criteria.
The importance of momentum.
We believe stocks do not move in isolation, and that understanding market trends can be transformational the investors' returns. For example:
- Over the last 10 years the S&P 500 is up 200+%. During this time, the IT sector increased 325%. However, investing in the best sector every year would have generated returns over 1,900%.
- Achieving perfection is not possible but being able to avoid the poorest performing sectors would transform overall performance. Choosing the worst sector over 10 years would have resulted in an 80% decline in portfolio value.
To identify momentum, we prioritize returns. Most, if not all other sites present the data in the traditional way: market-capitalization (market-cap) weighted. This means the higher the market capitalisation a company has, the greater the influence it has on the indices. For example:
- Focusing on the Nasdaq composite, this index includes ~3,000 companies which have a combined value of ~$30 trillion. The seven largest stocks in the index have a combined value in excess of ~$12 trillion.
- Consequently, the reported performance of the Nasdaq is heavily (40%) influenced by just seven companies. In the last twelve months there have been periods when those seven stocks have risen significantly in a single day, whilst most other stocks have fallen, this meant the reported indices rose due to the influence of these seven stocks, this is not a true reflection of the underlying markets.
We present stocks as equal weighted. Our calculations can identify underlying trends in the marketplace and not merely the performance of a handful of very large stocks. When using MTM, the data can be interrogated by market cap band. This is because different market cap bands perform differently versus their peers depending on the market cycle.
Additionally the risk appetite chart (Overview page) provides a graphic illustration of the balance between large and micro caps. Red shows the periods when large cap stocks outperform and green when small and micro-cap stocks outperform.