TD Ameritrade CEO: No Way We Are Going To Come Out Of Stimulus Without Volatility

The markets have been highly volatile ever since the Federal Reserve came out with dovish statements last week. TD Ameritrade Holding Corp. (NYSE: AMTD) CEO and President Fred Tomczyk was on CNBC Thursday to discuss the volatility in the markets, the impact of Fed raising rates and how his company gauges investor mood.

Volatility Will Persist

"I have been saying for six or nine months now that there's so much stimulus in the system – from monetary stimulus, from the Federal Reserve banks, but mostly the developed world, to be honest – and when they start to pull it out a way, there's no way we come out of that without volatility. And we are seeing that right now," Tomczyk said.

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Markets Will Come Down

Tomczyk was asked if the current volatility tells him that the stocks at these levels are overvalued. He replied, "I don't think that necessarily tells you they are overvalued or undervalued. I think that's open to debate.

"But I do think that basically there's no question that when they start to pull some of the stimulus away, market will come down. But I think it will recover and come all the way back, just like we have seen."

Gauging Investors Mood

On what he looks at in the data on trades made by TD Ameritrade's customers to gauge if there is bullishness or bearishness overall, Tomczyk said, "Well I look at four or five things. So, the first one I look at is logins. How many times people are logging in every day. Are they engaged? Trading levels. And then we measure something called the investor movement index, which is proprietary to TD Ameritrade, and that tells you what they are actually doing."