LIVE MARKETS-How institutional investors reacted to US shutdown - survey

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HOW INSTITUTIONAL INVESTORS REACTED TO US SHUTDOWN - SURVEY

Despite uncertainty, institutional investors largely stayed neutral, avoiding major portfolio shifts in November, State Street Survey finds.

The State Street Risk Appetite Index declined 0.09 last month, the first monthly decline after five months of increases.

Yet, beneath this caution, a subtle, but telling, trend emerged: long-term investors continue to hold elevated equity positions, especially in U.S. technology stocks, while beginning to diversify into Europe and China.

This mix of hesitation and selective risk-taking highlights the tension between short-term caution and long-term conviction.

Even amid the uncertainty, the survey underscores equities’ dominance as the preferred asset class, with cash ranking as a secondary option, the survey showed.

Finally, investors continued to refrain from allocating funds to fixed income assets.

(Joice Alves)

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