State Street Investor Confidence Index rises 5.4 points in January
The State Street Investor Confidence Index posted an 86.8 reading in January, up from a revised reading of 81.4 in December, State Street Global Markets said Tuesday.
The index was developed by Harvard University professor Kenneth Froot and Paul O’Connell of State Street Associates. It seeks to measure investor confidence or risk appetite quantitatively by analyzing the actual buying and selling patterns of institutional investors.
Froot commented on the January reading in a statement.
“2013 has opened with something of a turnaround in demand for global equities by institutional investors,” Froot said. “This comes on the heels of a two-and-a-half year period of persistent ‘de-risking’ by these institutions. We will be watching the data closely to see if this is a short-term deviation from trend, as we saw in mid-2012, or whether it signals a more concerted effort to rebuild core equity positions.”
State Street Global Markets is the investment research and trading arm of State Street Corp., a financial services company headquartered in Boston.Chris Reidy can be reached at firstname.lastname@example.org.