TD Ameritrade chairman Joe Moglia told CNBC Friday that his clients—individual investors—are regaining confidence in the stock market and increasing their equity holdings.
“About a year ago, our clients had 24 percent of their assets in cash. They’ve actually decreased their cash holdings by 25 percent in the last 12 months—to about 17 percent in cash,” said Moglia.
He made the comments in Omaha, Nebraska, the company's hometown, as it was filling up with Berkshire Hathaway shareholders attending Warren Buffett's annual meeting.
Moglia also said individual and institutional investors alike are still nervous about what’s going on in the market and feeling uncertain about changes coming from Congress and the Obama administration.
Moglia is worried that Washington may get too involved in Wall Street, with too much regulation, because “I don’t know that Washington understands the nuts and bolts of what’s going on on Wall Street.”
However, Moglia said he favors more oversight on consumer lending and better regulation of derivatives.
He added that today’s individual investor is more educated than he or she was a decade ago, when the dotcom bubble burst.
On the day the SEC's civil fraud case against Goldman Sachs was announced, Moglia said, the company had 600,000 trades.
“That’s never happened anywhere,” he said.
Moglia also said that TD Ameritrade’s market share had increased, even though his company has held fees firm, while competitors have lowered theirs.