TD Ameritrade CEO on 4Q Investor Survey
TD Ameritrade CEO Fred Tomczyk weighs in on investor sentiment.
- Duration 5:35
- Date Oct 23, 2012
TD Ameritrade CEO Fred Tomczyk weighs in on investor sentiment.
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Q okay in -- meantime look at back to California where my partner crime -- Melissa Francis once again broadcasting exclusively from the TD Ameritrade investor conference.
Great timing Melissa considering markets just really a sea change in sentiment is -- Oh absolutely -- I'm joined now by Fred Thompson TV -- trades president and CEO thanks so much for joining us.
-- together -- this its fourth quarter investors' sentiment survey.
For today based on you have you know six million active accounts right now almost five point seven million how -- feeling.
I think investors are generally feeling.
Uncertain right now I -- not -- to be surprised I think there's some sort of unprecedented uncertainty in the market.
They generally say that there are positive on the US economy but their actual actual behavior actually -- fairly conservative.
-- you know that very much on the sidelines.
And in fixed income right now.
But you know I think generally speaking are hopeful but once we get through the election things we'll get -- I've read somewhere that you said that you thought 2012 -- -- your lowest volume year.
And you know six or seven years is it looking like that stuff we're looking like that will announce our results a week today actually -- But I know I think you know if you look at the exchange volumes of we've been no different were headed for -- part of the lowest activity -- That we've seen in five to seven years.
You know I think that's the same things going on exchanges is going on to -- So how do you manage that as a business I mean does that mean consolidation.
Among the discount brokers and when the market -- back up here there you know weighs two pounds I think the industry has largely consolidated down there's probably another leg may be too but I think.
Obviously the industry historically has dealt with these types of environments through consolidation but right now others who were down to five players anyway.
What I think has shaken investors' sentiment I mean I know you were talking big picture but a lot of people point to.
The flash crash they point to high frequency trading has had an impact -- even things like FaceBook.
How big of a dent do you think that made an investor sentiment.
You know we this we ask this question in our survey and that is not what's causing the retail we.
-- -- but it's just not this bottom.
It's not on the list does not in the top five none of those three -- high frequency trading they don't feel like that.
The big guy is beating them to the trade on the computer like this is much bigger news on Wall Street for those of us in the industry is okay but.
He actually -- the average retail investor.
It is a -- the US economy the federal deficit spending.
Throughout the federal government the gridlock in Washington Europe.
And the Middle East that's what's -- -- unprecedented global uncertainty in certain -- While Washington get their act together -- election so what do you think can turn that around -- -- do you think that so they say uncertainty if there was certainty and President Obama was the president again.
Would that still be enough for -- is that the 5% of it says certainty that they're looking for.
I don't know.
I don't think they know what that what what they're looking for but they just want to be clearer.
Well what's going to happen -- with the fiscal deficit what's gonna happen with the US economy.
That the most interesting thing in the survey from my perspective is that to a third to the people actually believe that regardless of which presidential candidate wins it doesn't matter.
-- -- As you walk around here today and there's a lot of money walking around this building today -- conference what are people saying to you because we're doing this against the backdrop.
Of the market dropping more than 200 -- and a lot of results.
Not just results that are weak but guidance that's -- what are people saying -- today.
I think today people are all searching for what where does fiscal.
What's going to happen in the election.
And a more -- -- it was a -- wanna know or we're gonna get Washington to work together following the election.
And I know I look at the world today in my response Somalis -- when you look at businesses today they have a lot of corporate cash -- -- strong balance sheets.
We look at the retail investor today they have a lot on the sidelines are and risk free assets.
And if we could just get Washington to -- fiscal policy aligned with monetary policy -- for the short term and the long term.
We do need to reduce the deficit over the long term.
And I get rid of some of the uncertainty on the regulatory side I think the US economy won't go faster than most people think.
You I had it and number of different strangers asked me this weekend just randomly you what do you think it's gonna happen to the market after the election will it go off.
No matter what with the matter who's in office now I see you -- but this is what a lot of people out there are wondering what you think about a person like that what's what's the answer how do you start to answer that.
I think the result so will already be in the market by the time -- becomes obvious.
So I'm not sure it matters as much as people think but it may change people's sentiment.
Which is important which could be positive and I think.
I do believe and I and I mean this sincerely regardless of who wins the presidential campaign I'm actually optimistic.
That the two sides get off the field this to -- fight on the election in the gridlock.
Get back to govern and that's what their -- to four and I think that's what people are looking for.
Are people with TD Ameritrade accounts worried about raising the tax and capital gains and dividends -- that we don't hear that a lot but it certainly I think it definitely on the radar screen.
Today all right Fred toxic -- they do more coming up tonight at 5 PM eastern on Monday with Melissa Francis and I'll be back later in this hour as well.
Breaking down apple forty -- back to you.
Thank you so much Melissa that's a fascinating interview especially when mr.
-- -- said what was holding back investors will get today's themes here throughout the hour.