Investor optimism in free fall

Concern over high energy costs and a soured housing market sent investor optimism plummeting in November to its lowest level in two years, according to the UBS/Gallup Index of Investor Optimism. The monthly index dived 26 points to a reading of 44, falling from 103 in January and reaching its lowest point since the Gulf Coast was battered by Hurricane Katrina in September 2005. The Index, which is conducted on a monthly basis, had a baseline score of 124 when it was established in October 1996. The Economic Dimension of the Index, which measures investors' feelings about the U.S. economy, fell 20 points in November to a reading of -12. The Personal Dimension of the Index, which measures Investors' optimism about their individual investment portfolios, fell six points to a reading of 56. The study, which was conducted during the first two weeks of the month, surveyed 804 investors with total savings and investments of $10,000 or more.