4/7/2023 0 Comments Vector td fullscreenThe exception, of course, are those re-opening bets. Self-directed investors were willing to invest in securities (rather than staying on the side-lines in cash or fixed income) but the securities they chose typically tended to be less volatile – securities and sectors that may resonate with them geographically. While not quite a mullet sentiment (business in the front party in the back), the tug-of-war between optimism and pessimism does illustrate mixed feelings. We also observed home preference, in which investors in Alberta, Saskatchewan, Manitoba, and the Territories showed positive sentiment in energy stocks like Suncor. Again, we saw investors across different provinces betting on re-opening stocks such as AMC, Air Canada, Suncor, Cineplex and Carnival. When we slice self-directed investor sentiment by region, investors from Ontario and British Colombia showed negative sentiments, which were balanced by investors from Quebec, the prairies and Territories, which showed positive sentiment. Younger investors (Gen X, Y and Z) continued to appear to have more appetite in re-opening stocks such as AMC and Air Canada whereas older investors (Boomers and Traditionalists) sold securities with some uncertainty, such as Brookfield Property Partners and Inter Pipeline. These investors still bought (and held) energy stocks, such as Suncor and Enbridge. Moving to age groups, Boomer sentiment saw the sharpest monthly drop, from 19 last month to -12 in July, and contributed the most to the negative sentiment of the month. Both investor groups flocked into what might be considered re-opening stocks (e.g. Long-term investors (investors who trade less than 29 times per quarter) showed negative sentiment of -6, down from 17 in June. Active traders (investors who made more than 29 trades the previous quarter) continued to display positive sentiment of +8, despite a significant drop from 38 of last month. Safety, risk, and there’s no place like homeĪge groups, regions, and trading styles were really in their feelings in July. Other top sells were Nokia and AMD.ĭespite the building pessimism, Canadians seemed optimistic about the re-opening, as evident by the continued popularity of the movie theatre chain, AMC, and Canada's biggest airline, Air Canada. Conversely, Apple, although up 6.5% last month and supported by a strong Q2 earnings release, was the top sold within the DII technology sector. Suncor and Enbridge saw the heaviest buying.Īnother behemoth of a sector, Technology, was the top performer in July, led by semiconductors with NVIDIA and Micron among the most purchased in the sector by investors. Self-directed investors took advantage and bought some of the Energy stocks as they dropped from the yearly high. Oil prices still climbed last month (+0.7%), although at an anemic pace. Uncertainty surrounding OPEC’s (Organization of the Petroleum Exporting Countries) planned production increase and concerns over the rising delta variant impacted global demand. Oil markets were volatile last month and a good illustration of July's tug-of-war. B2Gold, Kinross and Barrick were top buys. central bank) will maintain support for the U.S. dollar, and rising expectations that the Fed (the U.S. Gold prices rallied with lower real interest rates, a weaker U.S. The Materials sector wasn't all down news. They sold more economically sensitive stocks, such as copper producer HudBay Minerals and lumber-related Western Forest Products (lumber declined 13.2% last month). Self-directed investor may have had concerns that the global economy has peaked. Why the drop? The sentiment was pulled down by sector heavyweights Materials and Energy. (And yes: a 52-point drop is kinda a big thing). Let's start with the overall TD Direct Investing Index (DII) dropping 52 points from June’s score to get us to July’s neutral +2. But don’t let these apparently tranquil numbers fool you: two opposing forces - increasing vaccination rate and rising concern of the delta variant - were likely driving a lot of activity. Meanwhile, the S&P/TSX Composite Index showed a gain of + 0.6%. Within the range of +100 to -100, July’s +2 DII sentiment score is firmly in neutral territory. July 2021: The optimism/pessimism tug-of-war results in neutral sentiment For insights into July’s self-directed investor behavior, read on. By looking at this historical activity, it can help us see how investors reacted to economic and financial market events.įor more information about the DII, read our FAQs. The TD Direct Investing Index (DII) provides data and insights relating to the historical self-directed investor activity.
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