Investment Approach

For any liberal, large and liquid financial market, we systematically interpret the market data in order to determine the positioning of the relevant group of investors, whether they are value, macro, technical or sentiment driven.

Process

We assume that different investor groups interpret market data according to their basic orientation. We strive to  demystify this complex process through codification and summarization of its essence in one signal with two dimensions.

The first dimension, the direction of the market, measures whether we are in a bull or bear market, covering the medium term and more fundamental aspects of the signal. The second dimension, the deviation from the fair prices, measures whether the market is overbought or oversold, covering the short term and more technical aspects of the signal.

Through the systematic interpretation of these two dimensions, Tom Capital Research arrives at a unique signal, delivering the tools for tactical asset allocation. 

The following figure summarizes our research process.

Positioning investor groups

Value
Technical
Macro
Sentiment
Market direction(mid term)

Determine fair price

Market direction
Technical price data
Fair price and deviation(short term)
Bull Bear
Overbought Sell
Oversold Buy
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