The start of 2019 did not produce a rise in investor sentiment.

Investors around the world grew gloomier about the market outlook in January, as sentiment worsened from December, a buying/selling barometer shows.

The Global Investor Confidence Index, issued by State Street Global Exchange, fell to 70.2, down by 9.4 points from December’s revised reading of 79.6. Confidence among North American investors worsened, with the North American ICI decreasing from 74.5 to 66.8. The European ICI dropped by 2.6 points to 90.3 and the Asia ICI fell by 10.3 points to 100.2.

The index was developed by Kenneth Froot and Paul O’Connell at State Street Associates, State Street Global Exchange’s research and advisory services business. The index measures investor confidence or risk appetite quantitatively by analysing the actual buying and selling patterns of institutional investors. A reading of 100 is neutral, where investors are neither increasing nor decreasing their long-term allocations to risky assets. 

“As we progress into 2019, our global Investor Confidence Index reflects a warp-speed deterioration in confidence. While confidence itself is not necessarily at an all-time low, this month's unprecedented low level reflects the extraordinary rate of retreat hastily beaten by professional managers,” Froot said.