Investors Shopping for Post-Brexit Bargains
Individual investors apparently shopped for post-Brexit bargains in June, scooping up stocks like Facebook (FB) - Get Report , Ford (F) - Get Report and Disney (DIS) - Get Report .
"Investors have taken the opportunity to buy on dips over the last few years and perhaps once more our clients felt that the pendulum had swung too far," said JJ Kinahan, chief strategist at TD Ameritrade (AMTD) - Get Report .
TD Ameritrade's Investor Movement Index rose 2.6 % in June to 5 from 4.87 in May compared to a flat return for the S&P 500. The 52-week high for the IMX is 5.39 while the 52-week low is 4.33. This is the third straight positive month for the index.
Each month, TD Ameritrade pulls a sample from its client base of 6 million funded accounts that 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.
Facebook and Amazon.com (AMZN) - Get Report were net buys in June, according to TD Ameritrade. Each has seen declines after recently setting all-time highs. Dividend-paying auto makers Ford Motor and General Motors (GM) - Get Report , both of which yield around 5%, were also net buys in June.
"We are going through a crazy fixed income market with repeated lows on the 10-year Treasury yield," said Kinahan. "People are looking for blue chip stocks where they can still get some good yield."
TD Ameritrade clients were also net buyers of consumer discretionary sector issuers Under Armour (UA) - Get Report and Walt Disney (DIS) - Get Report , which have both been range bound after setting year-to-date highs following their second-quarter earnings announcements.
On the flip side, Exxon Mobil (XOM) - Get Report and Chevron (CVX) - Get Report were net sold in June as both oil refiners reached year-to-date highs, according to TD Ameritrade. Crude oil also traded above $50 per barrel for the first time in 2016.
Other companies that also reached year to date highs and were net sold included Wal-Mart Stores (WMT) - Get Report and Corning (GLW) - Get Report , according to TD Ameritrade. TD Ameritrade clients were net sellers of technology sector names Intel (INTC) - Get Report and Cisco Systems (CSCO) - Get Report as well.