Retail investors remain cautious, decreasing
their equity exposure in June
The Investor Movement Index® (IMXSM) dipped to 4.61 in June,
down 6 percent from its May score. 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 June 2019 Investor Movement
Index (Graphic: TD Ameritrade)
The reading for the four-week period ending June 28, 2019 ranks
“Moderately Low” compared to historic ranges, marking a eight-month
trend of below average IMX scores.
“Investor cautiousness continued, even as markets rallied in
June, reaching all-time highs by midmonth,” said JJ Kinahan, chief
market strategist at TD Ameritrade. “Yet, it’s important to look at
one of the primary factors behind the rally – in this case, it is
the anticipation of Fed rate cuts – which is often motivated by
deeper insecurities about the economy.”
During the June IMX period, the S&P 500 and Dow Jones
Industrial Average were both up around 7 percent, while the Nasdaq
Composite was the leader, up 7.4 percent. However, the 10-year U.S.
Treasury yield decreased below 2 percent for the first time since
November 2016 while the Conference Board’s Consumer Confidence
Index decreased to the lowest point since September 2017. The
market saw gains midmonth as Federal Reserve officials agreed to
hold the benchmark interest rate steady. During the period, trade
resolution between President Trump and Chinese President Xi Jinpin
remained uncertain.
Despite their decreased exposure to equities, retail investors
at TD Ameritrade found some popular names to buy during the June
IMX period, including:
- Tesla Inc. (TSLA)
- Beyond Meat Inc. (BYND)
- Canopy Growth Corp. (CGC)
- Walt Disney Co. (DIS)
TD Ameritrade clients also net sold many popular names during
the period, including:
- Apple Inc. (AAPL)
- General Electric Inc. (GE)
- Netflix Inc. (NFLX)
- Snapchat Inc. (SNAP)
Millennial Buys & Sells During the June IMX period,
millennials with TD Ameritrade accounts favored many of the same
stocks as the overall population, including Tesla (TSLA), Canopy
Growth Corp. (CGC) and Beyond Meat (BYND). Unlike the total
population, millennials were net buyers of Uber (UBER) and Nvidia
(NVDA).
Millennials were also net sellers of several of the same
companies as the general population, including Apple (AAPL),
Netflix (NFLX) and Snapchat (SNAP). Unlike the total population,
they were also net sellers of Sirius (SIRI).
About the IMX The 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 June 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. All investments involve risk including the possible loss of
principal. Please consider all risks and objectives before
investing.
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 Corporation TD 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
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version on businesswire.com: https://www.businesswire.com/news/home/20190708005124/en/
At the Company Becky Niiya
Director, Corporate Communications (402) 574-6652
rebecca.niiya@tdameritrade.com
Jeff Goeser Managing Director, Investor Relations (402) 597-8464
jeffrey.goeser@tdameritrade.com
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