Retail investors stayed cautious, reducing risk even during all-time market highs
OMAHA, Neb.–(BUSINESS WIRE)–$AMTD #TDAmeritrade–The Investor Movement Index® (IMXSM) measured at 4.60 in July, down less than one percent from its June 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.
The reading for the four-week period ending July 26, 2019 remained relatively unchanged from the previous month. The score ranks “Moderately Low” compared to historic averages and continues a nine-month trend of below-average IMX scores.
“Investors continue to look for opportunities in the market, and in July they were leaning toward fixed income and away from equities,” said JJ Kinahan, chief market strategist at TD Ameritrade. “We are keeping a close eye on how the latest stream of news like the July rate cut, tariff negotiations and Brexit will affect the markets moving forward.”
During July, the S&P 500 surpassed the 3,000 mark for the first time ever, while the Dow Jones Industrial Average passed 27,000 for the first time. All three major equity indices reached all-time highs during the period. The U.S. economy grew at a 2.1 percent rate in the second quarter, with consumer spending increasing 4.3 percent and offsetting a decline in business investment. Congress and the White House also reached a deal on spending on the debt ceiling to avoid a looming fiscal crisis.
Despite their decreased exposure to equities, retail investors at TD Ameritrade found some popular names to buy during the July IMX period, including:
- Abbvie Inc. (ABBV)
- Walt Disney Co. (DIS)
- Canopy Growth Corp. (CGC)
- Aurora Cannabis Inc. (ACB)
TD Ameritrade clients also net sold many popular names during the period, including:
- Amazon Inc. (AMZN)
- Apple Inc. (AAPL)
- Intel Corp. (INTC)
- Facebook Inc. (FB)
Millennial Buys & Sells
During the July IMX period, millennials with TD Ameritrade accounts chose a few names to net buy that the overall population did not, including Uber Inc. (UBER) and Chesapeake Energy Corp. (CHK). Like the larger client population, millennials also net bought Disney (DIS), Abbvie Inc. (ABBV) and pot stocks Canopy Growth Corp. (CGC) and Aurora Cannabis Inc. (ACB).
Millennials were net sellers of most of the same companies as the general population, including Apple (AAPL), Amazon Inc. (AMZN) and Facebook (FB). Unlike the total population, they were also net sellers of JD.com (JD).
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 July 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.
Source: TD Ameritrade Holding Corporation
Director, Corporate Communications
Managing Director, Investor Relations