Charles Schwab Corp.’s chief executive officer said retail investors are eager to trade when there is more volatility — something more common since Donald Trump returned to the US presidency.
“Our clients trade more when there is more volatility, and they tend to be somewhat countercyclical,” Schwab CEO Rick Wurster said Friday in a Bloomberg Television interview. “The last few weeks, they’ve been buying dips and selling rips.”
Wurster said the news flow created by the government moving quickly spurs investor activity. On Thursday, Schwab reported a 30% increase in daily average trades, topping analysts’ estimates for the metric.
The Westlake, Texas-based firm also reported a surge in total net new assets in the third quarter, driven by increased adoption of wealth services and a favorable economic environment, Wurster said in the earnings statement. Openings of new brokerage accounts surpassed 1 million for the fourth quarter in a row.
Written by: Paige Smith — With assistance from Scarlet Fu and Romaine Bostick @Bloomberg
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