Retail investors toe-dip into equities and
bought fixed income during August’s spikes in volatility
The Investor Movement Index® (IMXSM) measured at 4.62 in August,
inching up slightly from its July 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 August 2019 Investor
Movement Index (Graphic: TD Ameritrade)
Continuing a 10-month trend of below-average IMX scores, the
reading for the five-week period ending August 30, 2019, was
relatively unchanged from the previous month, ranking “Moderately
Low” compared to historic averages.
“After two consecutive months of being net sellers of equities,
clients began moving back in to cautiously buying equities and
continued to use fixed income,” said JJ Kinahan, chief market
strategist at TD Ameritrade. “Fed Chairman Jerome Powell’s comments
on interest rates at the end of July helped kick off a volatile
month for stocks, with some investors seeking potentially
less-risky assets.”
Geopolitical headline news contributed to the spikes in
volatility of the S&P 500 during August, with the Cboe
Volatility Index (VIX) reaching the mid-20s for the first time
since January. The S&P 500 moved lower by 3.3 percent while the
Dow Jones Industrial Average was down 2.9 percent. The technology
sector was particularly volatile, with the Nasdaq Composite lower
by 4.4 percent. The yield curve on the two- and 10-year Treasurys
inverted for the first time since 2007, and the yield on the
30-year reached its lowest level ever. The U.S.-China trade war
continued to escalate, while the U.S. consumer confidence number
fell to 2016 lows, posting its biggest monthly drop since 2012. At
the same time, consumer prices rose and manufacturing activity, as
measured by the Chicago PMI, rebounded back to expansionary
territory.
Retail investors at TD Ameritrade used the volatility of the
August IMX period to buy popular names, including:
- Walt Disney Company (DIS)
- Amazon Inc. (AMZN)
- Microsoft Corporation (MSFT)
- Beyond Meat, Inc. (BYND)
- Uber Technologies, Inc. (UBER)
TD Ameritrade clients also sold popular names during the period,
including:
- Apple Inc. (AAPL)
- Micron Technology, Inc. (MU)
- QUALCOMM, Inc. (QCOM)
- Corteva, Inc. (CTVA)
- AT&T Inc. (T)
Millennial Buys & Sells During the August IMX period,
millennials with TD Ameritrade accounts bought names that the
overall population did not, including Aurora Cannabis Inc. (ACB)
and Canopy Growth Corporation (CGC). Like the larger client
population, millennials bought Walt Disney Company (DIS), Amazon
Inc. (AMZN); Microsoft Corporation (MSFT) and Uber Technologies,
Inc. (UBER).
Millennials were net sellers of most of the same companies as
the general population, including Apple Inc. (AAPL), Micron
Technology, Inc. (MU), and Corteva, Inc. (CTVA). Unlike the total
population, they were also net sellers of Facebook, Inc. (FB),
Alphabet Inc. (GOOG) and Twitter, Inc. (TWTR).
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
August 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/20190909005109/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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