Mon, May 25, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Investor confidence index falls just under one point to 103.9 in February, European worries over Greece stabilize

Tuesday, February 23, 2010
Opalesque Industry Updates - State Street Global Markets, the investment research and trading arm of State Street Corporation released the results of the State Street Investor Confidence Index® for February 2010.

Globally, Investor Confidence fell slightly 0.7 points to 103.9 from January's revised reading of 104.6. As with last month, the mood was upbeat in North America, where confidence increased by 3.3 points from a revised level of 108.0 in January to reach 111.3. Confidence was also slightly up in Europe, rising 2.1 points from January's revised reading of 99.0 to settle at 101.1. In Asia, by contrast, investors were more hesitant and confidence fell back to 97.0 from 98.1 in January.

Developed through State Street Global Markets’ research partnership, State Street Associates, by Harvard University professor Ken Froot and State Street Associates Paul O’Connell, the State Street Investor Confidence Index measures investor confidence on a quantitative basis by analyzing the actual buying and selling patterns of institutional investors. It is not a survey, but rather fact-based. The index is based on a financial theory that assigns precise meaning to changes in investor risk appetite. The more of their portfolio that institutional investors are willing to devote to equities, the greater their risk appetite or confidence.

“Institutional investors continued to balance a number of competing factors against one another in making their risk allocations this month," commented Froot. “Developments in Europe occupied much of their attention, as concerns around the long-term solvency of peripheral economies continued to grow. Although the most recent increase in the discount rate by the US Federal Reserve took place after the data for this month's ICI was collected, institutional investors appear to have anticipated the change, and what it implies for relative investment prospects across the Atlantic."

"In the early part of the month, investor sentiment appeared to overreact somewhat to developments in Greece," added O'Connell. "However, by month's end, institutional investors were approaching the European solvency issues in a more nuanced way. This, coupled with relatively good numbers on the US macroeconomic and earnings front, led North American investors to increase their allocations to risky assets overall. While Asian confidence fell back slightly, it remains close to the level it attained in September 2008, and as such does not represent an unduly pessimistic outlook."

Source

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Comment - Top hedge fund managers talk about how easy their jobs have gotten, BlackRock to Schroders warn of Argentina’s $20bn bond glut, The 35-year “investment supercycle” is drawing to a close, says Bill Gross, Gundlach: When the Fed starts hiking rates, 'GET OUT' of this asset class[more]

    Top hedge fund managers talk about how easy their jobs have gotten From Businessinsider.com.au: Time was, before the financial crisis hit, corporate boards treated multi-billion dollar hedge fund managers like Jehovah’s Witnesses pounding on their doors and flashing bibles. But no more.

  2. T Rowe's challenge to Dell deal may fuel critics of 'appraisal'[more]

    From Reuters.com: An increasingly popular tactic used by hedge funds and others to extract more money from buyouts could soon face a major courtroom test when a big investor in Dell Inc may argue that it should be paid a higher price for the 2013 acquisition of the PC maker. The strategy, known as "

  3. News Briefs - Ergen says LightSquared plan unfairly favors hedge funds, Why hedge fund managers make good advisory clients, I learned a lot about dad-bros after spending 4 days in Vegas with 2,000 hedge funders[more]

    Ergen says LightSquared plan unfairly favors hedge funds LightSquared Inc.’s bankruptcy plan gives hedge funds that invested in the broadband company a leg up while blocking telecommunications firms from competing with it, a fund owned by Dish Network Corp. Chairman Charles Ergen said in

  4. Opalesque Exclusive: SEC approves proposed changes to Form ADV, '40 Act - comment period to follow[more]

    Bailey McCann, Opalesque New York: Hedge funds and providers of liquid alternatives will want to pay close attention to proposed reforms approved by the SEC yesterday. The changes will require more frequent reporting, as well as a closer look into social media, liquid alternative strategies, and

  5. New market regime has created more dispersion between managers[more]

    Komfie Manalo, Opalesque Asia: The month of April has marked the transition toward a new market regime, Philippe Ferreira, Lyxor AM’s head of research, managed account platform, commented in the May 5's Weekly Briefing. "The first quart

 

banner