Institutional investors are more confident in March than they were last month, according to a survey.
The State Street Investor Confidence Index increased sharply by 10.0 points to 100.6 from February’s revised reading of 90.6.
The strong increase in the confidence of global institutional investors can be traced back to the market turmoil that began towards the end of last month.
“Looking regionally, there is a striking divergence in views,” says Paul O’Connell, State Street Associates director. “While U.S. investors felt comfortable increasing their exposure to equities in March, European confidence fell back from its recent high levels, and Asian investor confidence remained broadly flat for a second month running.”
The index measures investor confidence on a quantitative basis, analyzing actual buying and selling patterns of institutional investors. The more of the portfolio that institutional investors are willing to devote to equities, the greater their confidence.
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