The TD Ameritrade Investor Movement Index is a proprietary, behavior-based index created by TD Ameritrade designed to indicate the sentiment of individual investors’ portfolios.  It measures what investors are actually doing with their money as opposed to other sentiment surveys based on what investors say they’re doing with their money.  While a number of sentiment indicators only ask investors how they feel about the market, this index sheds a bit more light on their actual actions.

Based on the latest results of TD Ameritrade’s index, investors remain increasingly optimistic even after September’s pullback in equity markets.  In this month’s update, the index climbed from 4.93 to 5.71.  That’s the highest reading since October 2018 and the first time that the index topped its pre-COVID peak of 5.68 from back in January.  With a long-term average level of 5.7, it’s hard to argue that investor sentiment remains subdued after this month’s update.  That being said, the index has been higher than current levels a number of times over the last ten years.  With equities right near record highs, you would expect sentiment to be optimistic, and now it appears that the wall of worry isn’t as high as it once was.  Click here to view Bespoke’s premium membership options for our best research available.

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