State Street's investor confidence index declines

Global investor confidence decreased by 6.5 points to 48.0 in December from November's revised level of 54.5, State Street Global Markets said today.

Confidence among North American investors fell from November's revised reading of 45.3 to 30.1 in December, said State Street Global Markets, the investment research and trading arm of State Street Corp. Headquartered in Boston, State Street provides financial services to institutional investors.

   The investor confidence index was developed through State Street Global Markets' research partnership, State Street Associates, by Harvard University professor Ken Froot, and by State Street Associates director Paul O'Connell.

   "Having taken a pause in November, investor confidence resumed its sharp decline this month, and we witnessed some of the largest reallocations away from risky assets that we have recorded over the last decade," Froot said in a statement. "The selling was relatively broad-based throughout the month, though it did abate in the final days before December 17th, the cutoff for this month's measurement sample. Institutions, it seems, continue to have some trepidation about whether recent policy moves will be enough to forestall deflation and a pronounced economic slow-down in 2009."

To read State Street's press release about the index, please click here.
(By Chris Reidy, Globe staff)