The stock market may be stalking record highs on a regular basis, but investors don’t seem to be in any mood to chase it, if the latest data from investment tracking site Openfolio is any indication.
In fact, they appear to be circling the wagons.
Of the top four securities bought in August, three of them were bond ETFs: the iShares iBoxx Investment Grade Corporate Bond fund
the iShares National Muni Bond fund
and the Vanguard Total International Bond fund
On the flip side, the top four sold were tech-heavy: Facebook
and the Velocity Shares 3x Long Crude ETN
That last one is favorite choice of millennials looking to juice volatility, and has been for a while.
Twitter was the biggest wealth creator, gaining 15.4% as the ninth-most popular stock among Openfolio investors, while Tesla
was the biggest wealth destroyer, giving up almost 10% as the fourth-most popular stock.
For most, it was a good month as three-quarters of investors managed to get out of a slow August with gains. The ones who made money did so with an average portfolio allocation of 10% cash, 44% stocks, 46% funds/ETFs. The 25% or so who lost went heavier in both cash and stocks.
How slow was August? Well, the S&P
has not registered a 1% or greater move in 38 straight trading days. Yes, slow.
Still, in a flip of the script, investors actually outperformed the S&P over the month. That’s a notable accomplishment considering the past year has seen the broad-market gauge gain 12.6% while Openfolio investors — some 75,000 of them — have managed a relatively scant average return of 5.4%.
By age, it’s pretty clear that the young ’uns ruled the month, led by the under-25 set. The 65+ age group, which understandably isn’t nearly as equity-heavy, brought up the rear.