The Retail Investor Is Back: TD Ameritrade CEO
Nervous retail investors have left the sidelines and are back in the market, TD Ameritrade CEO Fredric Tomcyzk told CNBC Tuesday, before the market briefly hit 13000.
"No question the retail investor was on the sidelines through most of December and much of January," he said. "I've certainly noticed a change in momentum" in the last few weeks.
He blamed the "uncertainty around the U.S. economy and Europe" for affecting investors, who waited to come back until they saw signs of an improving economy.
Now that they are back, they want yield. That means dividend-paying stocks and options. Tomcyzk said the options market makes up 25 percent to 30 percent of the online brokerage's trades from 20 percent a year ago and 12 percent several years before.
Also on the increase? Trading on your mobile phone. That's why the brokerage is now offering its own mobile trading app, he said.