OMAHA, Neb.--(BUSINESS WIRE)--The Investor Movement Index® (IMXSM) rose for the second month in a row, reaching 4.65 in March, up 1.3 percent from February’s score of 4.59. 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 five-week period ending March 29, 2019 shows investors were once again willing to increase their risk exposure, but ranks “Moderately Low” relative to the historic level of exposure investors took to the market.
“Major decisions surrounding key political concerns like Brexit and the China trade deal are on hold for the time being and remain overriding factors,” said JJ Kinahan, chief market strategist at TD Ameritrade. “In the short term, we’ve seen hope of a positive resolution on trade issues and that helped the overall markets go higher in March.”
Economic news was largely mixed for investors in March. Nasdaq Composite and S&P 500 were both positive, increasing 2.7 percent and 1.5 percent respectively. The Dow Jones Industrial Average was the market laggard, down 0.5 percent during the period. It was reported that the economy grew at 2.6 percent during the fourth quarter, while job gains came in lower than expected. The Federal Reserve held its benchmark rate steady and signaled it wasn’t likely to raise rates again this year.
TD Ameritrade clients were net buyers of equities during the March IMX period, and popular names bought include:
- Tesla Inc. (TSLA)
- NIO Inc. (NIO)
- Aurora Cannabis Inc. (ACB)
- CVS Health Corp. (CVS)
- AT&T Inc. (T)
TD Ameritrade clients also found some names to sell in March, particulary among FAANG stocks, including:
- Amazon Inc. (AMZN)
- Facebook Inc. (FB)
- Netflix Inc. (NFLX)
- Apple Inc. (AAPL)
- Intel Corp. (INTC)
Millennial Buys & Sells
Both populations - millennials and the total client population - were net buyers in March.
Compared to TD Ameritrade’s total client base, millennials once again favored Canopy Growth (CGC), also buying Walt Disney Co. (DIS), Kraft Heinz Co. (KHC), Twilio Inc. (TWC) and Ford Motor Company (F).
Millennials also found equities to sell, and net sold names including Roku Inc. (ROKU), Snap Inc. (SNAP) and Chipotle Mexican Grill Inc. (CMG). Under Armour Inc. (UAA) also made the list for the third time in a row.
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.
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About TD Ameritrade Holding Corporation
TD Ameritrade provides investing services and education to more than 11 million client accounts totaling approximately $1.2 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 900,000 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