Main Street Wary of 'Sexy' Stocks Says TD Ameritrade's Kinahan

The recent selloff in social media and biotech shares illustrates the growing caution among individual investors for risky stocks, said Joe Kinahan, Chief Strategist for TD Ameritrade. Kinahan added that TD Ameritrade's Investor Movement Index, which tracks individual investor flows, showed that investors decreased their stock holdings in April. He said uncertainty in the biotech sector has individual investors selling the ‘pops’ in the iShares Nasdaq Biotechnology (IBB). Similarly, Kinahan said the selloff in social media stocks like LinkedIn and Yelp following their earnings reports demonstrates the skittishness in high multiple names.