What retail investors are buying and selling

Client Sentiment & Market Outlook - Charles Schwab's client survey indicates that 60% of retail investors anticipate a return of equity volatility this summer due to trade policy shifts [1] - Clients expressed less bearishness compared to April, but remain concerned about tariff and trade policies in the coming months [3] - Fixed income volatility is a specific concern for clients, who are monitoring its potential impact on equity markets and their investments [4] Generational Differences in Trading Behavior - Gen X and older investors tend to hold onto positions more, while younger generations (Millennials and Gen Z) are more actively trading in and out [5] Sector & Stock Rotation - There was a rotation out of higher beta names, particularly in information technology and communication services sectors [7] - Healthcare saw the largest inflow, with United Healthcare being a top stock on the buy list [7] - Nvidia, Microsoft and Meta were the top stocks on the sell list [15][17] Investment Strategy Shifts - A rotation from individual stock picking towards ETFs has become more prevalent since the end of December [8] - Despite concerns about bond volatility, there was significant buying activity in the fixed income market, especially in treasuries [9] - Premium selling is prevalent in the options market, as premium buyers have not been rewarded due to the VIX decreasing from 60 to 16 [11] - Clients are trading more around at-the-money options with short-term strategies instead of taking long-term positions [13]