The Trump administration has started at pace, but most investors remain bullish and optimistic, according to a new poll by Morgan Stanley Wealth Management.
The survey of investors was conducted from January 6-16 and found that 58% are bullish, down just a single point from the previous quarter, while 64% are optimistic that the market will be higher by the end of the first quarter.
However, investors remain concerned about inflation’s effect on their portfolio. It’s the top concern at 45% and is in line with the previous quarter as is market volatility at 24%, while 21% cited the new administration, but this was 13-points lower than in Q4, 2024.
Six in ten respondents think the Fed can go ahead with rate cuts but caution has grown on whether the economy is healthy enough for this, with a nine-point decline since last quarter.
Asked about their top picks for stocks by industry, IT (52%), energy (46%), and health care (32%) continue to lead.
“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.”
Morgan Stanley’s quarterly retail investor pulse survey included 909 self-directed investors, investors who fully delegate investment account management to financial professionals, and investors who utilize both.
A separate survey from the AAII conducted last week, painted a less upbeat picture with bullish sentiment declining to just 25.4% of respondents, down more than nine points from the previous week.
Bearishness increased more than three points to 40.2% and neural sentiment was up six points to 34%.
The survey tracks sentiment of investors based on whether they expect stock prices to rise, fall, or be essentially unchanged over the next six months.
New report shows dimmed outlook for benefits to retirees and disabled Americans, creating further pressure for federal tax hikes or more borrowing.
Open letter to SEC Chair Paul Atkins questions whether the Ivy League university withheld material information prior to its $750 million taxable bond offering.
The Las Vegas-based hybrid RIA overseeing $8.8 billion in assets has named Andy Kalbaugh president to help scale its advisor platform.
The wealth tech giant – in collaboration with Fidelity, BlackRock, State Street, and Franklin Templeton – is offering its advisor and wealth firm users more ways to diversify.
Deal volume increased post-election but now caution has taken over.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave
