TD Ameritrade Investor Movement Index: IMX Hits Seven-Year Low in March

TD Ameritrade clients were net buyers overall during historic market volatility

The Investor Movement Index^® (IMX^SM) decreased to 4.16 in March, down 19.38 percent from its February score of 5.16. 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.

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TD Ameritrade March 2020 Investor Movement Index TD

The reading for the four-week period ending March 31, 2020, ranks "Low" compared to historic averages.

"Not since the financial crisis of 2008 have we seen this kind of volatility in the markets," said JJ Kinahan, chief market strategist at TD Ameritrade. "This provided our clients with an opportunity to revisit their portfolios in a new world of temporary uncertainty, and they were attracted to companies with strong balance sheets that have previously weathered storms. Looking ahead, there's a lot we don't know, from the continued impact of the COVID-19 pandemic to the potential lift provided by the recently passed economic stimulus package."

The March IMX period saw market volatility increase to historic levels. Markets officially entered bear market territory, or 20 percent below previous highs. The S&P 500 decreased 13.97 percent during the period, with the Dow Jones Industrial Average down 14.85 percent, and the Nasdaq Composite moving lower by 16.19 percent. Volatility was rampant for the entire period, with the S&P 500 having only one day with a move less than plus or minus one percent, and the Dow Jones registering 12 days with a move greater than plus or minus 1,000 points. The Dow posted its worst day since October 1987, ending the 11-year bull market. The Federal Reserve reacted, decreasing the federal funds rate twice and announcing accelerating Treasury bond purchases in an attempt to increase economic activity. During the last week of the period, markets rebounded as Congress and the Trump Administration passed a $2 trillion stimulus package aimed at helping business and consumers alike, giving the Dow its best week since 1938.

TD Ameritrade clients were net buyers overall during the March IMX period, after net selling last month. Equities were net bought, in addition to fixed income products as market volatility increased and the Cboe Volatility Index (VIX), which measures volatility of the S&P 500 Index, increased above 80 for the first time since November 2008. Retail investors used a shorter time frame to trade in the first part of the month, as turnover was faster than normal and volatility was quickly changing, followed by heavier net buying later in month. Some of the popular names bought by clients during the period included:

• The Walt Disney Company (DIS)
• Ford Motor Company (F)
• Boeing Inc. (BA)
• Exxon Mobile Corp. (XOM)

Despite being net buyers during the period, TD Ameritrade retail clients did find some names to sell, such as:

• Activision Blizzard Inc. (ATVI)
• Paypal Holdings Inc. (PYPL)
• Tencent Holdings Inc. (TCEHY)
• Fitbit Inc. (FIT)

Millennial Buys & Sells

For the first time since TD Ameritrade began tracking the Millennial IMX, its score dipped lower than the general IMX, decreasing by 1.24, or 23.4 percent, to 4.09 in March. Millennials held steady throughout the month, buying systematically as markets sold off. During this period, unique millennial buys included Royal Caribbean (RCL) and Uber (UBER).

In March, millennials did less selling than the general population, but the top names sold largely matched with those selected the total client base, including Tencent Holdings Inc. (TCEHY) and Fitbit Inc. (FIT).

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 12 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 2020; 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 thinkorswim Mobile 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 approximately 12 million client accounts totaling approximately $1.4 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 1 million 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 nearly 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

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