Schwab clients more active amid equities rally, but what are they buying?

Schwab clients more active amid equities rally, but what are they buying?
The firm's Trading Activity Index reveals slight uptick in buying.
FEB 06, 2024

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).

ECONOMIC FACTORS

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.

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

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.