Even with all the warnings about market volatility being too low, and the potential that a Trump presidency could roil markets, it seems global investors are still actively moving money back into risk assets.
That’s the message in the latest release of the State Street Investor Confidence Index (ICI) for October. The global ICI, which measures investor confidence or risk appetite quantitatively by analysing the actual buying and selling patterns of institutional investors, rose 3.6 points to 99.1 from 95.5 in September, State Street said.
Again it is in Asia where investors are most bullish, with the ICI rising to 120.5 from 118.3. That’s a new record, according to Ken Froot, co-developer of the ICI.
But investors are also more hopeful for Europe (89.1 from 85.4) and North America (95.4 from 92.3).
The move over the past two months has washed away the losses seen in the aftermath of the Brexit, Michael Metcalfe, senior managing director and head of Global Macro Strategy at State Street Global Markets, said.
“The fact that investor confidence has risen even though the probability of a Fed interest rate hike has also edged higher in the past two months is encouraging,” he added.