TD Ameritrade clients were net buyers of equities in October but moved into lower volatility names as the S&P 500 and Nasdaq 100 set new all-time highs. The move to lower volatility and defensive names caused the IMX to move slightly lower to 8.22 (-5.08%) in October.

TD Ameritrade clients were net buyers overall, increasing their holdings of both equities and fixed- income assets. While market volatility was elevated throughout the month, TD Ameritrade clients initially sold equities to start October, but resumed buying in the latter half of the month.

Equity markets started the month of October cautiously as fears of reaching the U.S. debt ceiling and uncertainty of the impact rising input costs would have on the upcoming earnings cycle for reporting companies’ profitability. With banks reporting solid earnings and many companies beating analyst expectations, the market charged to new all-time highs as buying of equities surged to close the month. All major sectors moved higher over the month except the Communications Sector, which came under pressure and underperformed the rest of the market. After snapping a 7-month streak of positive gains in September, the S&P 500 once again had a strong month.