Investor Confidence Index January 2022

The State Street Investor Confidence Index rose 4.5 points throughout January to 89.3. Getting to 100 is considered neutral.

The increase was led by Europe, which saw a whopping increase of 18.2 points from December’s low of 85.3. Asian confidence points rose slightly by 1.7 points, up to 97.1, while North American confidence dipped by 1.4 points to 93.6.

“Investors continued to shy away from risk assets in January as the global ICI continued to hover close to its weakest reading in over a year,” commented Rajeev Bhargava, head of Investor Behavior Research, State Street Associates.

“Sentiment within the US remained subdued as an increasingly hawkish stance from the Fed, rising Covid infection rates locally due to the Omicron variant, and a disappointing start to earning season likely led to a continued reassessment of allocations away from higher beta assets. On a more positive tone, investor confidence across Europe recovered a bit as the regional ICI rose 18 points from December’s reading. Absolute levels, however, still remain consistent with risk averse behavior, so it will be important to see if momentum continues to build.”

The Investor Confidence Index was developed at State Street Associates, State Street Global Markets’s research and advisory services business, in partnership with FDO Partners.