Jami Miscik Director | Morgan Stanley
Morgan Stanley Wealth Management has released the findings of its quarterly retail investor pulse survey. The survey shows that a majority of investors maintain a bullish outlook, with 58% expressing optimism at the start of the year, similar to last quarter's 59%. Additionally, nearly two-thirds (64%) anticipate a market rise by the end of the quarter.
Inflation remains a primary concern for investors, with 45% citing it as their top worry. This figure is consistent with last quarter's 46%. Market volatility concerns have increased slightly to 24%, up from 23% in Q4. However, worries about the new administration have decreased by 13 percentage points since last quarter.
A significant portion of investors continue to support rate cuts, with nearly three out of five (59%) believing that the U.S. economy is robust enough for the Federal Reserve to reduce rates this quarter. This represents a decline of nine percentage points from previous data.
Chris Larkin, Managing Director and Head of Trading and Investing at E*TRADE from Morgan Stanley, commented on these findings: "As with any new administration coming in, potential policy changes can cause uncertainty in the markets," he said. "That said, investors remain optimistic and resilient amid a soft start to 2025."
The survey also examined investor perspectives on sector opportunities for Q1 2025. Information Technology remains favored by 52% due to growth prospects for the year. Interest in energy has increased by three points to 46%, driven by rising oil and gas prices. Conversely, health care interest has declined by four percentage points to 32%.
Conducted between January 6 and January 16, 2025, this survey included an online sample of 909 self-directed investors who either manage their own investments or delegate them fully or partially to financial professionals. The margin of error stands at ±3.20 percent at a confidence level of 95%. Dynata fielded and administered this survey.
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