More about State Street Confidence Index

This State Street Investor Confidence Index chart is one of the Sentiment Charts I use to help set the asset allocation of my "explore portfolio."

Charts of the State Street Investor Confidence Index plotted versus the Dow Jones Industrial Average (DJIA), S&P500 and  NASDAQ composite index are key sentiment indicators for stock market technical analysis. 

Contrarian theory states the time to buy is when fear and pessimism is at a maximum since this usually occurs near market bottoms.

According to State Street, the “State Street Investor Confidence Index® measures the attitude of investors to risk. Developed by Harvard Professor Ken Froot and State Street Associates Director Paul O'Connell, the Index uses the principles of modern financial theory to model the underlying behavior of global investors. Unlike other survey-based confidence measures that focus on expectations for future prices and returns, the Index provides a quantitative measure of the actual and changing levels of risk contained in investment portfolios representing about 15% of the world's tradable assets."