A proprietary index of retail investor stock positions and trading activity reveals an uptick in January compared to the previous month.
The Schwab Trading Activity Index rose slightly from 44.56 to 44.73 as the stock market rally enticed participation. However, this remains ‘moderate low’ compared to historical averages.
“Schwab’s clients were net buyers of equities in January,” said Joe Mazzola, Director of Trading and Education at Charles Schwab. “While exposure was still relatively low when viewed in a historical context, we saw that for the most part, our clients stayed in step with the market rally, finding opportunities to increase exposure in particular to the ‘Magnificent Seven’ companies as the new year began.”
But what was in the sights of the firm’s investors last month?
Big tech stocks continued to dominate with Tesla Inc. (TSLA), NVIDIA Corp. (NVDA), Amazon.com Inc. (AMZN), Microsoft Corp. (MSFT), and Advanced Micro Devices (AMD) among the most popular stocks bought by Schwab clients.
In contrast, the most sold stocks included Bank of America Corp. (BAC), Walmart Inc. (WMT), General Motors Co. (GM), Carnival Corp. (CCL), and Warner Bros. Discovery Inc. (WBD).
Investors digested multiple data points in January including better-than-expected jobs stats with unemployment remaining low, CPI running hotter than expected, and GDP gaining more than forecast. These elements all suggested monetary policy may not be eased as much as markets were anticipating.
However, the S&P 500 continued to reach new heights, with a rise of 2.54% to close at 4890.97 during the period of the STAX analysis.
Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.
Reshuffle provides strong indication of where the regulator's priorities now lie.
Goldman Sachs Asset Management report reveals sharpened focus on annuities.
Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.
Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.
How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave
