TD Ameritrade clients were net sellers overall
for first time since June 2019
The Investor Movement Index® (IMXSM) decreased
to 5.16 in February, down 9.15 percent from its January score of
5.68. 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 Feb. 2020 Investor Movement
Index (Graphic: TD Ameritrade)
The reading for the four-week period ending February 28, 2020,
ranks “Moderate Low” compared to historic averages.
“Turbulence in the markets, particularly toward the end of the
month, led retail investors to reduce their exposure in February,
selling equities and buying historically less risky assets,
including fixed income,” said JJ Kinahan, chief market strategist
at TD Ameritrade. “We’ll be keeping a close eye on the market
volatility that lies ahead as the global health impact of
coronavirus becomes more clear and the Federal Reserve’s rate cut
plays out.”
The February IMX period saw heightened volatility for equity
markets. As concerns rose that the COVID-19 outbreak could become a
global pandemic, the markets saw their worst weekly performance
since the 2008 financial crisis, with the S&P 500 down 11.49
percent, the Nasdaq down 10.54 percent, and the Dow Jones
Industrial Average down 12.36 percent in the final week of trading.
This selloff put the S&P 500 down 8.41 percent for the month,
with the worst performance coming from the Dow Jones finishing down
10.07 percent, and the Nasdaq outperforming both but still
finishing down 6.38 percent. The Cboe Volatility Index, or VIX,
which measures the volatility of the S&P 500 Index, jumped to
40.11, securing its highest close since the turmoil that followed
the devaluation of the Chinese yuan in August 2015.
Retail investors at TD Ameritrade were net sellers of equities
during the February period. However, clients did use the pullback
as a buying opportunity for popular names and disruptive companies,
including:
- Microsoft Inc. (MSFT)
- Apple Inc. (AAPL)
- The Walt Disney Company (DIS)
- Gilead Sciences Inc. (GILD)
As markets climbed in the first weeks of February, retail
investors saw an opportunity to take profits in some names that
were at or near highs to start the month, selling popular names
such as:
- Amazon Inc. (AMZN)
- Netflix Inc. (NFLX)
- Twitter Inc. (TWTR)
- Square Inc. (SQ)
Millennial Buys & Sells In February, there were some
differences between millennial trading activity and the general
population. Millennials net bought Penn National Gaming (PENN),
Advanced Micro Devices (AMD) and Visa (V).
On the sell side, millennials differed from the total client
population with Iqiyi (IQ) and Activision Blizzard (ATVI).
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 12 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 February 2020; 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 thinkorswim Mobile 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 approximately 12
million client accounts totaling approximately $1.4 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 1 million 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 nearly 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/20200309005159/en/
Margaret Farrell Sr. Manager, Corporate Communications (203)
434-2240 margaret.farrell@tdameritrade.com
Jeff Goeser Managing Director, Investor Relations (402) 597-8464
jeffrey.goeser@tdameritrade.com
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