As major U.S. stock indexes came close to or hit all-time highs, TD Ameritrade clients were net equity buyers in September, the latest Investor Movement Index (IMX) showed.
This is how the IMX works: When the index’s score rises, it means investors' recent past activity has leaned toward a bullish stance; conversely, when the score declines, investors' recent past activity has tended toward bearishness.
Over September, the IMX surged by 4.37 percent to 5.49, hitting its highest point in two years, driven by the elevated relative volatility that the lower overall volatility triggered.
TD Ameritrade shared a look into what the firm’s clients did in September.
“[L]ooking at the data, there’s little doubt that retail investors have had more appetite lately for stocks, especially those that are a little beaten down or offer attractive yield,” the firm said, mentioning dividend, stocks and healthcare stocks among investors’ favorites.
TD Ameritrade retail investors became net sellers of Apple Inc. AAPL as the stock hit multi-month highs. Conversely, these traders became net buyers of Bristol-Myers Squibb Co BMY, which lost more than 6 percent over September, and an extra 7.75 in October.
Other net buys included dividend-paying Verizon Communications Inc. VZ and AT&T Inc. T, as well as Facebook Inc FB, even though the stock hit an all-time high, and out-of-favor Tesla Motors Inc TSLA.
Among net sells were Apple, Netflix, Inc. NFLX, and Alibaba Group Holding Ltd BABA, which hit a 52 week high after its earnings report.
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