Confidence among institutional investors may be breaking down according to State Street's index which fell to a very weak 86.5 in February and reflects easing demand for equities. The North American sample shows the greatest weakness, at 80.5 for its lowest reading in more than three years. Europe is at 95.2 with Asia at 96.3. A reading below 100 indicates demand for safety.
The State Street Investor Confidence Index measures confidence by looking at actual levels of risk in investment portfolios. This is not an attitude survey. The State Street Investor Confidence Index measures confidence directly by assessing the changes in investor holdings of equities. The more of their portfolio that institutional investors are willing to invest in equities, the greater their confidence.
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