An investor confidence index maintained by State Street Global Markets posted a 2-point gain in November, as the month’s reading rose to 97.2, up from a revised reading of 95.2 in October.
State Street Global Markets is the investment research and trading arm of State Street Corp., a large financial services company headquartered in Boston.
The State Street Investor Confidence Index was developed by Harvard University professor Kenneth Froot and Paul O’Connell of State Street Associates. A reading of 100 represents a neutral, the level at which investors are neither increasing nor decreasing their allocations to risky assets.
“This month was a case of ‘two steps forward, one step back’ as strong reallocations to risk in late October and early November gave way to some pull-back from risky assets in the middle part of November,’’ Froot said in a statement. “To a large degree the ebb and flow was driven by persistent doubts about the way forward for European policy makers. At 97.2, Global Investor Confidence is close to its 3-year median, signaling that investors are adopting a wait and see attitude at this midway point of the fourth quarter.’’