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Sunday, October 28, 2007

October 2007 State Street Investor Confidence Falls to 82.6

The State Street Investor Confidence Index Fell From 88.7 to 82.6 in October 2007. This the lowest reading since November 2006 when the reading was 82.2 and the DJIA only $12,280. The confidence index peaked at 99.6 in August 2007 with the Dow Jones Industrial Average at $13,379.

Click Sentiment Chart to see full sized

Press Release :

Boston, October 23, 2007: State Street Global Markets, the investment research and trading arm of State Street Corporation (NYSE:STT), today released the results of the State Street Investor Confidence Index® for October 2007. Global Investor Confidence fell by 6.1 points to a level of 82.6, from last month’s revised reading of 88.7. Sentiment in North America declined from 102.8 to 89.2. Asian investors were also feeling more cautious, resulting in a decline of 1.7 points in the Asian Confidence Index. Only in Europe did institutional risk appetite improve, rising from 82.9 to 83.6.
According to State Street, their “State Street Investor Confidence Index® measures the attitude of investors to risk. Developed by Harvard Professor Ken Froot and State Street Associates Director Paul O'Connell, the Index uses the principles of modern financial theory to model the underlying behavior of global investors. Unlike other survey-based confidence measures that focus on expectations for future prices and returns, the Index provides a quantitative measure of the actual and changing levels of risk contained in investment portfolios representing about 15% of the world's tradable assets.

More Graphs

I cover five other sentiment indicators in my newsletter. These indicators are:

  • ISE (International Securities Exchange) Sentiment Index
  • II-BBS: Investors’ Intelligence Bull Bear survey
  • CBOE (Chicago Board Options Exchange) Put/Call Ratio (CPC)
  • VIX (CBOE Volatility Index)
  • AAII Bull/Bear Ratio (American Association of Individual Investors)

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