Morgan Stanley Wealth Management today announced results from its quarterly individual investor pulse survey, revealing that despite a drop in optimism, bullish sentiment remains strong among investors. According to the survey, three out of five investors (60%) are bullish this quarter, consistent with the previous quarter.

Chris Larkin, Managing Director, Head of Trading and Investing at E*TRADE from Morgan Stanley, commented on the market trends, stating, “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. 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 also highlighted a decrease in investors' optimism about the economy, with only half of the investors agreeing that the Fed will be able to execute a “soft landing,” down 7 percentage points from the previous quarter. Additionally, fewer investors are planning to make changes to their portfolios, with 50% stating they do not plan to make any changes for the next six months, significantly more than last quarter.

In terms of concerns, the survey found that inflation and election worries have increased among investors. Over half (53%) expressed concerns about inflation, up from 49%, while unease about the 2024 election rose to 31% from 26%.

The survey also explored investor views on sector opportunities for the second quarter of 2024, with technology remaining the top choice for investors, followed by energy and health care sectors.

The survey was conducted from April 1 to April 17, 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 margin of error for the survey is ±3.20 percent at the 95 percent confidence level.

Morgan Stanley Wealth Management, a global leader in financial services, provides a wide range of products and services to individuals, businesses, and institutions, including brokerage and investment advisory services, financial and wealth planning, cash management, lending products, annuities, insurance, retirement, and trust services.

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This article has been prepared solely for informational purposes and is not a solicitation to buy or sell any security or financial instrument. Investors are advised to independently evaluate investments and strategies and seek the advice of a Financial Advisor.