Business Wire
Morgan Stanley Wealth Management announced the results of its quarterly retail investor pulse survey:
- Bearishness rose. The majority (51%) of investors are now bearish—up 9 percentage points from last quarter.
- Inflation tops tariffs as chief worry. Over two out of five (41%) investors say inflation is their top portfolio concern, followed by tariffs in second with 35%, and market volatility in third with 24%.
- Rate-cut optimism fades. Less than half of investors (48%) believe the U.S. economy is healthy enough for rate cuts, down from 59% last quarter.
- Yet investors are staying the course. 37% of investors do not plan to make changes to their portfolio, down only two percentage points from last quarter. Further, less than 1 in 5 (17%) plan to move to the sidelines in cash.
“Despite pronounced economic uncertainty and market volatility, investors seem to be sticking with their investing plans,” said Chris Larkin, Managing Director, Head of Trading and Investing, E*TRADE from Morgan Stanley. “While optimism has faded and traders may be a bit rattled, timing the market can be a fool’s errand especially as we’ve witnessed recent unpredicted twists and turns.”
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The survey explored investor views on sector opportunities for the second quarter of 2025:
- IT – Amid continued interest in AI and chips, technology remains the top choice for investors (48%)—though interest dropped four percentage points.
- Energy – Traders continue to see opportunity in energy (41%) despite oil prices dipping.
- Health care – With market and economic uncertainty at the forefront, interest in health care remained steady (32%) as it can be a ballast amid a market in slow growth mode.
This wave of the survey was conducted from April 1 to April 14 of 2025 among an online US sample of 912 self-directed investors, investors who fully delegate investment account management to financial professionals, and investors who utilize both. The survey has a margin of error of ±3.20 percent at the 95 percent confidence level. It was fielded and administered by Dynata. The panel is broken into three investable assets: less than $500k, between $500k to $1 million, and over $1 million. The panel is 60% male and 40% female and self-select as having moderate+ investing experience, with an even distribution across geographic regions, and age bands.
Morgan Stanley Wealth Management, a global leader, provides access to a wide range of products and services to individuals, businesses and institutions, including brokerage and investment advisory services, financial and wealth planning, cash management and lending products and services, annuities and insurance, retirement and trust services.
Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals.
This has been prepared for informational purposes only and is not a solicitation of any offer to buy or sell any security or other financial instrument, or to participate in any trading strategy. This material does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Morgan Stanley recommends that investors independently evaluate particular investments and strategies and encourages investors to seek the advice of a Financial Advisor.
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