MS Morgan Stanley

Morgan Stanley Wealth Management today announced results from its quarterly retail investor pulse survey:

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(Graphic: Morgan Stanley Wealth Management)

• Majority of investor views remained bullish. Investors kicked off the year bullish (58%), in line with last quarter (59%). Additionally, nearly 2 out of 3 investors (64%) believe the market will rise by the end of the quarter.
• Inflation concerns remain top, while political concerns drop. Inflation continues to be the top worry for investors’ portfolios at 45%, in line with last quarter at 46%, while market volatility at 24% ticked up to second (in line with Q4 at 23%). Concern over the new administration dropped 13 percentage points since last quarter.
• Majority still support rate cuts. Nearly 3 out of 5 (59%) of investors believe the U.S. economy is healthy enough for the Fed to cut rates this quarter, although that majority dropped 9 percentage points.

“As with any new administration coming in, potential policy changes can cause uncertainty in the markets,” said Chris Larkin, Managing Director, Head of Trading and Investing, E*TRADE from Morgan Stanley. “That said, investors remain optimistic and resilient amid a soft start to 2025.”

The survey explored investor views on sector opportunities for the first quarter of 2025:

• IT – Amid growth prospects for 2025, IT remained the top choice (52%).
• Energy – Interest in this sector rose by three points (46%) amid a rise in oil and gas prices.
• Health care – Bullish investors may have pared back on this traditionally defensive sector as it dropped down 4 percentage points to 32%.

About the Survey This wave of the survey was conducted from January 6 to January 16 of 2025 among an online US sample of 909 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.

About Morgan Stanley Wealth Management 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.

About Morgan Stanley Morgan Stanley (NYSE: MS) 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. For further information about Morgan Stanley, please visit www.morganstanley.com.

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.

Morgan Stanley Portfolio Solutions are portfolios available in our Select UMA platform under either Firm Discretionary UMA or Managed Advisory Portfolio Solutions. Please see the Select UMA ADV at www.morganstanley.com/ADV

Past performance is not a guarantee or indicative of future performance. Historical data shown represents past performance and does not guarantee comparable future results.

This material contains forward-looking statements and there can be no guarantee that they will come to pass. Diversification and asset allocation do not guarantee a profit or protect against loss in a declining financial market.

This material should not be viewed as investment advice or recommendations with respect to asset allocation or any particular investment. Morgan Stanley Wealth Management is the trade name of Morgan Stanley Smith Barney LLC, a registered broker-dealer in the United States.

Morgan Stanley Smith Barney LLC and Dynata are not affiliates. © 2025 Morgan Stanley Smith Barney LLC. Member SIPC.

Referenced Data

When it comes to the current market are you?

 

Q4’ 24

Q1’ 25

Bullish

59%

58%

Bearish

41%

42%

 

 

Where do you predict the market will end this quarter?

Q4’24

Q1’25

Rise Total

64%

64%

Rise 20%

2%

4%

Rise 15%

8%

7%

Rise 10%

19%

18%

Rise 5%

35%

35%

0/Stay where it is

16%

15%

Drop - 5%

14%

11%

Drop - 10%

5%

6%

Drop – 15%

1%

2%

Drop – 20%

1%

1%

 

 

Which of the following are you most concerned about when it comes to your portfolio? (Top 2)

 

Q4’24

Q1’25

Inflation

46%

45%

Market volatility

23%

24%

New administration

N/A

21%

Earnings

14%

19%

A recession

18%

17%

Geopolitical conflict

16%

17%

Energy costs

14%

15%

Fed monetary policy

14%

12%

Jobs market

4%

6%

Narrow market driven by mega-caps

2%

5%

None

2%

3%

2024 election

34%

N/A

 

Please rate how much you agree or disagree with the following statements. The U.S. economy is healthy enough for the Fed to cut rates [again] this quarter.

 

Q4’ 24

Q1’ 25

Agree (Top 2)

68%

59%

Strongly agree

26%

20%

Somewhat agree

42%

39%

Neither agree nor disagree

17%

25%

Somewhat disagree

11%

13%

Strongly disagree

4%

4%

 

 

What industries do you think offer the most potential this quarter? (Top three)

Q4’24

Q1’25

Information technology

54%

52%

Energy

43%

46%

Health care

36%

32%

Financials

28%

31%

Real estate

27%

30%

Industrials

22%

25%

Utilities

29%

22%

Communication services

19%

20%

Consumer staples

18%

17%

Materials

15%

16%

Consumer discretionary

10%

11%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250121827052/en/

Media Relations Contact: Lynn Cocchiola, Lynn.Cocchiola@morganstanley.com