Institutional Investor Confidence Dips for Fifth Month


A Stealth Social Security Cut Is Coming in 2018

Top 10 Ridiculous Luxury Gifts: 2017

IRS Postpones 1095 Delivery Deadline

State Street Global Exchange reported Tuesday that its Global Investor Confidence Index for December fell 1.5 points to 94.8 from November’s revised reading of 96.3.

“After peaking in July this year, investor confidence has now fallen for five consecutive months; the last three of which have seen investors reduce their holdings of risky assets (an index reading below 100),” Michael Metcalfe, senior managing director and head of global macro strategy at State Street Global Markets, said in a statement.


“While the broader economic outlook appears increasingly rosy, as captured by measures of consumer and business confidence, the more cautious nature of investors hints at a concern that financial markets may have already discounted much of the good news.”

A recent survey found that global investors’ cash balance rose in December for the first time in four months, paving the way for more risk asset upside in the beginning of 2018.

The Global Investor Confidence Index measures investor confidence or risk appetite quantitatively by analyzing the actual buying and selling patterns of institutional investors. A reading of 100 is neutral, the level at which investors are neither increasing nor decreasing their long-term allocations to risky assets.


December’s fall in sentiment resulted in a 6.2-point drop in the North American index to 94.9 and a 2.8-point fall in the Asian index to 94.8, according to State Street. However, the European index rose 16 points to 96.9.

“In Europe, healthy growth and continued European Central Bank asset purchases may have helped to boost investor confidence,” said Kenneth Froot, who developed the index with Paul O’Connell at State Street Associates, State Street Global Exchange’s research and advisory services business.

“Although the index remains below 100, it seems that European-based investors are becoming less concerned that political risks could derail the strong economic performance across the region.”


— Check out Mixed Bag for Bonds in 2018 on ThinkAdvisor.

The investment strategist tells ThinkAdvisor who the big losers are under the tax revamp and why the measure is “remarkably…

You are signed up!

Your resource for news, research and analysis to help you deliver more effective outcomes to your clients. width:300px!important;max-height:36px; Financial Education Resource Center Financial Education Resource Center

ThinkAdvisor and the College for Financial Planning have partnered to bring you a series of helpful educational tools that you can use to take your career to the next level. width:300px!important;max-height:36px; ThinkAdvisor TechCenter

ThinkAdvisor’s TechCenter is an educational resource designed to give you a competitive edge by keeping you abreast of new tech innovations and need-to-know information that can be applied to your business. padding: 0px;width: inherit; ETF & Smart Beta Research ETF & Smart Beta Research

A survey of advisors nationwide reveals how the use of ETFs is expanding and what factors are likely to further support this trend. Resources Exploring Independence: An Overview of the Registered Investment Advisor Model

Why more advisors are choosing to become RIAs

Reviewing this paper and incorporating the steps included into your 2018 marketing plan will enable you to be effective and take advantage of the huge…

Financial firms are failing to manage text messaging risk in the workplace. This guide explores how firms are exposed, the challenges of compliance and steps…

Join this webcast to see how Trisha Qualy, Director of Wealth Management at AdvisorNet Financial, took client assets from $100 million to $1.3 billion in…

Join this complimentary webcast to learn innovative strategies that have proven effective in containing rising health costs.

Join this conversation as a panel of experts provides tips and best practices to optimize your tech resources for business growth.