Retail investors responded to increased volatility in May by taking
on more risk
OMAHA, Neb.–(BUSINESS WIRE)–$AMTD #TDAmeritrade–The Investor
Movement Index® (IMXSM) reached 4.93 in May,
up 7 percent from its April score of 4.61. 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.
The reading for the five-week period ending May 31, 2019 ranks as the
highest IMX score in six months as a result of clients increasing their
exposure to equities. Still, this IMX score ranks “Moderately Low”
relative to historic ranges.
“Investor anxiety in May led to a market sell-off, but many investors
used that volatility and the lower prices to their advantage, adding
some stocks to their portfolios at attractive prices,” said JJ Kinahan,
chief market strategist at TD Ameritrade. “In the coming weeks, we’ll be
keeping a close eye on the Fed decision as investors hope for a
long-anticipated rate cut.”
During the May IMX period, the S&P 500 decreased 6.4 percent while the
Dow Jones Industrial Average declined 6.5 percent. Pressure in the
technology sector caused the Nasdaq Composite to fall 8.5 percent.
Uncertainty over global trade and economic growth were in play, as trade
talks with China collapsed. The 10-year Treasury yield decreased more
than 35 basis points during the period, ending at 2.14 percent, its
lowest point since September 2017.
Retail investors at TD Ameritrade found popular names to buy during the
May IMX period, including several new entrants to the public market.
- Uber Technologies Inc. (UBER)
- Beyond Meat Inc. (BYND)
- Pinterest Inc. (PINS)
- Canopy Growth Corp. (CGC)
- Tesla Inc. (TSLA)
TD Ameritrade clients also found popular names to sell during the period.
- Facebook Inc. (FB)
- Netflix Inc. (NFLX)
- Roku Inc. (ROKU)
- Wabtec Corp. (WAB)
- General Electric Co. (GE)
Millennial Buys & Sells
There were some differences in
net buys between millennials and the total investor population.
Millennials were net buyers of Aurora Cannabis (ACB), while the total
population bought Canopy Growth (CGC). Uber (UBER) was popular among all
populations, but millennials also favored Lyft (LYFT).
Millennials were net sellers of some of the same tech companies as the
general population, including Facebook (FB) and Netflix (NFLX). Unlike
the total population, they were also net sellers of Twitter (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 May 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 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
Contacts
At the Company
Becky Niiya
Director,
Corporate Communications
(402) 574-6652
[email protected]
Jeff Goeser
Managing Director, Investor Relations
(402)
597-8464
[email protected]
