State Street’s global investor confidence index posts an all-time low

A global investor confidence index maintained by State Street Global Markets posted a drop to an 80.6 October reading, the lowest monthly reading in the index’s 14-year history.

October’s reading is down 6.7 points from a revised September reading of 87.3.

State Street Global Markets is the investment research and trading arm of State Street Corp., a Boston-based financial services company.

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The State Street Investor Confidence Index was developed by Harvard University professor Kenneth Froot and Paul O’Connell of State Street Associates. The index seeks to measure investor confidence by analyzing the actual buying and selling patterns of institutional investors.

In a statement, Froot said: “Globally, institutional investor confidence is at the lowest level it has been since the inception of the ICI (investor confidence index) in 1998 and this month’s reading is 1.5 points below the previous low set in October of 2008. Institutional investors continue to display a pronounced, almost secular desire to reallocate away from equities and towards fixed income and cash securities, and this desire has accelerated through the recent market correction.”