Morgan Stanley Wealth Management’s latest quarterly retail investor pulse survey has revealed that investor sentiment remains stable as 2025 begins. The survey found that 58% of investors started the year with a bullish outlook, similar to the 59% recorded in the previous quarter.
Additionally, 64% of investors expect the market to rise by the end of the first quarter.
Inflation remains the top concern for investors, with 45% of respondents citing it as the main risk to their portfolios, consistent with the previous quarter’s 46%. Market volatility was the second most significant concern, with 24% of investors mentioning it, a slight increase from 23% in the last survey.
Concerns regarding the new administration decreased by 13 percentage points since the previous quarter.
The survey also showed that 59% of investors believe the U.S. economy is strong enough to allow the Federal Reserve to cut interest rates in the first quarter. However, this percentage is nine points lower than the previous quarter’s 68%.
The survey results suggest a consistent level of optimism among investors, with a continued focus on inflation, market volatility, and the performance of key sectors as 2025 continues.
