Retail investors found buying opportunities in April, but were
largely risk averse while trading equities
OMAHA, Neb.–(BUSINESS WIRE)–lt;a href=”https://twitter.com/search?q=%24AMTD&src=ctag” target=”_blank”gt;$AMTDlt;/agt; lt;a href=”https://twitter.com/hashtag/TDAmeritrade?src=hash” target=”_blank”gt;#TDAmeritradelt;/agt;–The Investor
Movement Index® (IMXSM) reached 4.61 in April,
down slightly from its March score of 4.65. 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 IMX reading for the four-week period ending April 26, 2019 ranks
“Moderately Low” relative to the historic level of exposure investors
took to the market. TD Ameritrade clients were net buyers, but favored
less risky assets, such as fixed income products, over equities.
“Stocks have been climbing since the beginning of the year into April
and earnings season was off to a fairly positive start,” said JJ
Kinahan, chief market strategist at TD Ameritrade. “Yet volatility
receded and clients continued to slightly decrease exposure as markets
climbed upward and hit new highs.”
During April, the S&P 500 increased by 3.7 percent, while the Nasdaq
Composite Index was up 5.4 percent, each ending the period at all-time
closing highs. Markets moved higher after better-than-expected GDP
growth was reported in the first quarter, with the economy expanding at
3.2 percent. Job gains bounced back during the period, with U.S.
payrolls growing by 196,00 and the unemployment rate remained near
historic lows at 3.8 percent. Earnings season also kicked off, with many
companies reporting better-than-expected earnings. Still, the S&P 500 is
on pace for the first year-over-year decline in earnings since 2016.
Retail investors at TD Ameritrade found popular names to buy during the
April IMX period, including:
- Lyft Inc. (LYFT)
- CVS Health Corp. (CVS)
- Walt Disney Co. (DIS)
- Tesla Inc. (TSLA)
- NIO Inc. (NIO)
TD Ameritrade clients also sold a number of popular names, including:
- Facebook Inc. (FB)
- Amazon Inc. (AMZN)
- Bank of America Corp. (BAC)
- Twitter Inc. (TWTR)
- Alibaba Group (BABA)
Millennial Buys & Sells
For the first time since TD
Ameritrade began tracking millennial IMX data in January 2018, there
were no differences between the popular net buys among millennials and
the total client base.
When it came to net sold equities, millennials contrasted from the
broader client base by net selling popular names like JD.com (JD),
Chipotle Mexican Grill Inc. (CMG) and Under Armour Inc. (UAA).
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 March 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]
