Morgan Stanley Wealth Management Pulse Survey Reveals Bullish Sentiment Despite Drop in Optimism
19 April 2024 - 6:05AM
Business Wire
Inflation, election concerns mount
Morgan Stanley Wealth Management today announced results from
its quarterly individual investor pulse survey:
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the full release here:
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(Graphic: Morgan Stanley Wealth
Management)
- Bullishness remained steady. Three out of five investors
(60%) are bullish this quarter—consistent with last quarter.
- Fewer investors are optimistic about the economy.
Roughly half (53%) agree that the Fed will be able to execute a
“soft landing,” down 7 percentage points from last quarter.
- Yet, fewer investors are making changes to their
portfolio. Half of investors (50%) said they do not plan to
make any changes to their portfolios for the next six months,
significantly more than last quarter (42%). Additionally, only 10%
plan on moving out of their current positions and into cash, down
4% from Q1.
- Inflation and election concerns have increased. Over
half (53%) said that they were most concerned about inflation, up
from 49%. Unease about the 2024 election ticked up to 31% from
26%.
“The US stock market is coming off one of its strongest first
quarters of the past 20 years, and so it should not be too large a
surprise to see it pull back,” said Chris Larkin, Managing
Director, Head of Trading and Investing, E*TRADE from Morgan
Stanley. “Yet despite economic uncertainty amid the revised pace of
rate cuts for the year, along with uncertainty around the 2024
election, investors remain optimistic about the market.”
The survey explored investor views on sector opportunities for
the second quarter of 2024:
- IT – Amid continued interest in chipmakers and AI,
technology remained the top choice for investors this quarter.
- Energy – After Q1 showed glimpses of recovery from 2023,
interest in energy held steady as a second choice for investors as
oil prices rallied to multi-month highs.
- Health care – Perhaps utilized as a hedge, the
traditionally defensive health care sector secured the third spot
at 36%.
About the Survey
This wave of the survey was conducted from April 1 to April 17
of 2024 among an online US sample of 875 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
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Past performance is not a guarantee or indicative of future
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This material contains forward-looking statements and there can
be no guarantee that they will come to pass. Diversification and
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This material should not be viewed as investment advice or
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2024 Morgan Stanley Smith Barney LLC. Member SIPC.
Referenced Data
When it comes to the current market are
you?
Q1’24
Q2’ 24
Bullish
60%
60%
Bearish
40%
40%
Please rate how much you agree or
disagree with the following statements: The Fed will be able to
steer the economy into a "soft landing."
Q1’24
Q2’24
Top 2
60%
53%
Strongly agree
17%
15%
Somewhat agree
43%
38%
Neither agree nor disagree
25%
26%
Somewhat disagree
12%
14%
Strongly disagree
3%
7%
Bottom 2
15%
21%
When it comes to your portfolio for the
next six months are you considering any of the following
strategies?
Q1’24
Q2 ‘24
Make no changes to my portfolio
42%
50%
Change the allocations in my portfolio
26%
24%
Move out of cash and in to new
positions
18%
14%
Move out of current positions and in to
cash
14%
10%
Other
0%
2%
Which of the following are you most
concerned about when it comes to your portfolio? (Top 2)
Q1’24
Q2 ‘24
Inflation
49%
53%
2024 election
26%
31%
A recession
24%
20%
Market volatility
22%
22%
Geopolitical conflict
18%
16%
Earnings
16%
13%
Fed monetary policy
14%
10%
Energy costs
13%
13%
Narrow market driven by mega-caps
4%
3%
None
1%
2%
What industries do you think offer the
most potential this quarter? (Top three)
Q1’24
Q2’24
Information technology
53%
52%
Energy
45%
43%
Health care
38%
36%
Real estate
29%
30%
Financials
28%
27%
Utilities
25%
24%
Communication services
20%
20%
Industrials
19%
20%
Consumer staples
18%
20%
Materials
14%
16%
Consumer discretionary
11%
12%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240418137302/en/
Media Relations Contact: Lynn Cocchiola,
Lynn.Cocchiola@morganstanley.com
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