State Street investor confidence index posts biggest jump in 18 months

State Street investor confidence index posts biggest jump in 18 months
The Americas lead gains across all regions as risk appetite grows.
AUG 31, 2023

North America is leading a global increase in investor confidence according to State Street Global Markets.

The firm’s proprietary measure of sentiment and risk appetite shows a rise of 12.9 points to 103.8 in the region in August, the largest increase across global regions. Europe (up 4.3 points to 103.7) and Asia (up 4.8 points to 102.2) saw far smaller increases and lower overall scores.

The Global Investor Confidence Index increased to 107.7, up 11.4 points from July’s revised reading of 96.3. The index is centered at 100 with movement above or below indicating institutional investors intentions to either increase or decrease their long-term allocations to risky assets.

“Investor confidence saw its biggest jump in 18 months, with the Global ICI now solidly in risk seeking territory, as risk appetite improved in every region this month,” commented Marvin Loh, senior global macro strategist at State Street Global Markets. “The improvement was led by North America, which recorded its strongest reading in a year on the heels of falling recessionary concerns. A pair of better-than-expected CPI prints have also supported the view that a soft landing was possible.”

INDIVIDUAL INVESTORS

The growing sentiment among the world’s largest investors is at odds with individual investors according to the latest survey from the American Association of Individual Investors.

For the week ended August 24, 2023, bullish sentiment remained below average for the second week in a row, while bearish sentiment was above average for the first time in 12 weeks.

Expectations that stock prices will fall over the next six months increased 5.8 percentage points to 35.9%. After 11 consecutive weeks of below-average readings, pessimism is above its historical average of 31.0%.

Latest News

More Americans are invested in the elections than the stock market
More Americans are invested in the elections than the stock market

A substantial number of people in a new 2,200-person survey believe their wealth, their "wallet power" and their retirement timelines are at stake.

Stocks rally to fresh highs as JPMorgan drives bank gains
Stocks rally to fresh highs as JPMorgan drives bank gains

The S&P 500 headed toward its 45th record in the year helped in part by a surprise interest income gain at the Wall Street giant.

Boosting payouts on cash crimps wealth management at Wells Fargo
Boosting payouts on cash crimps wealth management at Wells Fargo

Meanwhile, Wells Fargo’s WIM group reported close to $2.3 trillion at the end of last month.

Another AI-washing case shows where SEC is headed
Another AI-washing case shows where SEC is headed

The Securities and Exchange Commission has focused on "black-and-white" allegations of AI washing, but that could broaden out to a gray area that may loop in more financial services companies, a lawyer says.

High-net-worth giving splits along generational and gender lines, find BofA survey
High-net-worth giving splits along generational and gender lines, find BofA survey

More than nine in 10 HNWIs prioritize charitable giving, but demographics help shape the whys and the hows.

SPONSORED Destiny Wealth Partners: RIA Team of the Year shares keys to success

Discover the award-winning strategies behind Destiny Wealth Partners' client-centric approach.

SPONSORED Explore four opportunities to elevate advisor-client relationships

Morningstar’s Joe Agostinelli highlights strategies for advisors to deepen client engagement and drive success