Retail investors found buying opportunities in
April, but were largely risk averse while trading equities
The Investor Movement Index® (IMXSM) reached 4.61 in April, down
slightly from its March score of 4.65. The IMX is TD Ameritrade’s
proprietary, behavior-based index, aggregating Main Street investor
positions and activity to measure what investors actually were
doing and how they were positioned in the markets.
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TD Ameritrade April 2019 Investor
Movement Index (Graphic: TD Ameritrade)
The IMX reading for the four-week period ending April 26, 2019
ranks “Moderately Low” relative to the historic level of exposure
investors took to the market. TD Ameritrade clients were net
buyers, but favored less risky assets, such as fixed income
products, over equities.
“Stocks have been climbing since the beginning of the year into
April and earnings season was off to a fairly positive start,” said
JJ Kinahan, chief market strategist at TD Ameritrade. “Yet
volatility receded and clients continued to slightly decrease
exposure as markets climbed upward and hit new highs.”
During April, the S&P 500 increased by 3.7 percent, while
the Nasdaq Composite Index was up 5.4 percent, each ending the
period at all-time closing highs. Markets moved higher after
better-than-expected GDP growth was reported in the first quarter,
with the economy expanding at 3.2 percent. Job gains bounced back
during the period, with U.S. payrolls growing by 196,00 and the
unemployment rate remained near historic lows at 3.8 percent.
Earnings season also kicked off, with many companies reporting
better-than-expected earnings. Still, the S&P 500 is on pace
for the first year-over-year decline in earnings since 2016.
Retail investors at TD Ameritrade found popular names to buy
during the April IMX period, including:
- Lyft Inc. (LYFT)
- CVS Health Corp. (CVS)
- Walt Disney Co. (DIS)
- Tesla Inc. (TSLA)
- NIO Inc. (NIO)
TD Ameritrade clients also sold a number of popular names,
including:
- Facebook Inc. (FB)
- Amazon Inc. (AMZN)
- Bank of America Corp. (BAC)
- Twitter Inc. (TWTR)
- Alibaba Group (BABA)
Millennial Buys & SellsFor the first time since TD
Ameritrade began tracking millennial IMX data in January 2018,
there were no differences between the popular net buys among
millennials and the total client base.
When it came to net sold equities, millennials contrasted from
the broader client base by net selling popular names like JD.com
(JD), Chipotle Mexican Grill Inc. (CMG) and Under Armour Inc.
(UAA).
About the IMXThe IMX value is calculated based on a
complex proprietary formula. Each month, TD Ameritrade pulls a
sample from its client base of more than 11 million funded
accounts, which includes all accounts that completed a trade in the
past month. The holdings and positions of this statistically
significant sample are evaluated to calculate individual scores,
and the median of those scores represents the monthly
IMX.
For more information on the Investor Movement Index, including
historical IMX data going back to January 2010; to view the full
report from March 2019; or to sign up for future IMX news alerts,
please visit www.tdameritrade.com/IMX. Additionally, TD
Ameritrade clients can chart the IMX using the symbol $IMX in
either the thinkorswim® or TD Ameritrade Mobile Trader
platforms.
Inclusion of specific security names in this commentary does not
constitute a recommendation from TD Ameritrade to buy, sell, or
hold.
Past performance of a security, strategy, or index is no
guarantee of future results or investment success.
Historical data should not be used alone when making investment
decisions. Please consult other sources of information and
consider your individual financial position and goals before making
an independent investment decision.
The IMX is not a tradable index. The IMX should not be used
as an indicator or predictor of future client trading volume or
financial performance for TD Ameritrade.
For the latest TD Ameritrade news and information, follow the
company on Twitter, @TDAmeritradePR.
About TD Ameritrade Holding CorporationTD Ameritrade
provides investing services and education to
more than 11 million client accounts totaling approximately $1.3
trillion in assets, and custodial services to more than
7,000 registered investment advisors. We are a leader in U.S.
retail trading, executing an average of approximately 850,000
trades per day for our clients, more than a quarter of which come
from mobile devices. We have a proud history of innovation,
dating back to our start in 1975, and today our team of
10,000-strong is committed to carrying it forward. Together, we are
leveraging the latest in cutting edge technologies and one-on-one
client care to transform lives, and investing, for the better.
Learn more by visiting TD Ameritrade’s
newsroom at www.amtd.com, or read our stories
at Fresh Accounts.
Brokerage services provided by TD Ameritrade, Inc., member
FINRA (www.FINRA.org) / SIPC (www.SIPC.org)
Source: TD Ameritrade Holding Corporation
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190506005453/en/
At the CompanyBecky NiiyaDirector,
Corporate Communications(402)
574-6652rebecca.niiya@tdameritrade.com
Jeff GoeserManaging Director, Investor Relations(402)
597-8464jeffrey.goeser@tdameritrade.com
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