State Street Investor Confidence Index
Definition of 'State Street Investor Confidence Index 'An index that measures investor confidence by looking at actual levels of risk taken by investors in their portfolios. The State Street Investor Confidence Index reports on the second-last Tuesday of each month, using data it collected at the close of trading on the previous Wednesday. It was codeveloped by Harvard professor Ken Froot and State Street associate director Paul O'Connell. |
|
Investopedia explains 'State Street Investor Confidence Index 'It is believed that this approach is more accurate than data collected from surveys of investors and money managers. Using modern portfolio theory to analyze actual portfolios of investors is a more direct approach to analyzing confidence in the financial markets. As investors tend towards riskier assets in their portfolios, it can be assumed that confidence is increasing. |
Related Definitions
Articles Of Interest
-
Economic Indicators For The Do-It-Yourself Investor
These tools put the market in your hands. -
Find The Highest Returns With The Sharpe Ratio
Learn how to follow the efficient frontier to increase your chances of successful investing. -
Explaining The World Through Macroeconomic Analysis
From unemployment and inflation to government policy, learn what macroeconomics measures and how it affects everyone. -
Modern Portfolio Theory: Why It's Still Hip
See why investors today still follow this old set of principles that reduce risk and increase returns through diversification. -
Introduction To Stationary And Non-Stationary Processes
What to know about stationary and non-stationary processes before you try to model or forecast. -
What is GDP and why is it so important?
The gross domestic product (GDP) is one the primary indicators used to gauge the health of a country's economy. It represents the total dollar value of all goods and services produced over a ... -
Economic Indicators To Know
The economy has a large impact on the market. Learn how to interpret the most important reports. -
How To Profit From Risk
CDs may look safe and attractive but considering most pay a rate that is less than the rate of inflation seniors today risk actually losing money with CDs. We need to be our own money managers ... -
Investing In REITs Instead Of Property
Learn why this one particular REIT is a better investment than holding physical property in your retirement portfolio. -
Multi-Asset Funds Or Your Own Mix?
The underlying concept of mixed funds is very appealing. Discover if you're better off with professional management or creating a mixed fund of your own.
Free Annual Reports