Retail investors decreased exposure to equity
markets during September
The Investor Movement Index® (IMXSM) measured at 4.51 in
September, down slightly from its August 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 Sept. 2019 Investor
Movement Index (Graphic: TD Ameritrade)
The reading for the four-week period ending Sept. 27, 2019 fell
by 2 percent, continuing an 11-month trend of below-average IMX
scores. Compared to historic averages, this score ranks “Moderately
Low”.
“Stocks finished the third quarter roughly where they started,
but getting there was a volatile ride, and investors reacted by
rotating holdings away from equities and toward fixed income in
September,” said JJ Kinahan, chief market strategist at TD
Ameritrade. “Many investors sold some of their FAANG positions as
the tech sector suffered from ongoing tariff uncertainty
surrounding the U.S. and China.”
Equity markets were mixed during September, with the S&P 500
moving higher by 1.2 percent and the Dow Jones Industrial Average
increasing by 1.6 percent. The Nasdaq Composite ended the period
slightly lower, down 0.3 percent, as the technology sector lagged.
Oil prices were volatile following an attack on a Saudi oil
facility, posting the biggest one-day gain in more than a decade.
The Federal Reserve also voted to cut its benchmark interest rate
by 25 basis points for the second time in two months.
Retail investors at TD Ameritrade did find some popular names to
buy during the September IMX period, including:
- Slack Technologies Inc. (WORK)
- Walt Disney Co. (DIS)
- Roku Inc. (ROKU)
- Abbvie Inc. (ABBV)
TD Ameritrade clients were net sellers of equities in September,
and net sold many popular tech names, including:
- Apple Inc. (AAPL)
- Facebook Inc. (FB)
- Alphabet Inc. (GOOG)
- Netflix Inc. (NFLX)
Millennial Buys & Sells
Like the larger client population, millennials with TD
Ameritrade accounts also net bought Slack Technologies Inc. (WORK),
Walt Disney Co. (DIS) and Roku Inc. (ROKU) in September. They chose
a few names to net buy that the overall population did not,
including Aurora Cannabis (ACB), Square Inc. (SQ) and Lyft Inc.
(LYFT).
Millennials were net sellers of many of the same companies as
the general population, including some of the same tech stocks like
Apple Inc. (AAPL), Facebook Inc. (FB) and Alphabet Inc. (GOOG).
Unlike the total population, they were also net sellers of tech
stocks Twitter Inc. (TWTR) and Snap Inc. (SNAP).
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 September 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.
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 800,000 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/20191007005547/en/
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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