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Investors press pause on portfolio moves
Morgan Stanley Wealth Management today announced the results of its quarterly retail investor pulse survey:
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- Bullish sentiment holds steady. Following a mixed start to 2026, more than half of investors (56%) are bullish this quarter—consistent with Q4 (56%).
- Inflation concerns loom large. Inflation continues to be the top concern for investors (47%), far outpacing other fears. Unease tied to tariffs ranks second (27%) but is down 6 percentage points.
- Market volatility expectations dampened. Fifty-seven percent of investors think market volatility will increase this quarter, dropping 8 percentage points from Q4.
- Investors stay the course. Fifty-two percent of investors do not plan to make any changes to their portfolio over the next six months—up 11 percentage points from 41% last quarter, amid the heightened geopolitical backdrop, tariffs and "sticky" inflation.
"As the year kicks off with a choppy market and continuing uncertain geopolitics, it's encouraging to see investors stick to their investment strategies and play the long game," said Chris Larkin, Managing Director, Head of Trading and Investing, E*TRADE from Morgan Stanley. "It's important for investors to remember that the market doesn't always go up and swings are normal. While they navigate potential bumps ahead, a disciplined investing approach will help them stay focused on their long-term goals."
The survey explored investor views on sector opportunities for the first quarter of 2026:
- IT— Momentum around AI continues to help drive positive sentiment on the tech sector, despite the recent sell-off. Sixty percent of investors view information technology as the sector with the most potential.
- Energy– Investor interest in energy increased slightly (up 7 percentage points to 49%), amid data center power demand.
- Health care– Sentiment on the health care sector continues to be elevated (33%), in this historically defensive sector.
About the Survey
This wave of the survey was conducted from January 6 to January 26 of 2026 among an online US sample of 978 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 evaluate particular investments and strategies and encourages investors to seek the advice of a Financial Advisor.
Morgan Stanley Portfolio Solutions are portfolios available in our Select UMA platform under either Firm Discretionary UMA or Managed Advisory Portfolio Solutions. Please see the Select UMA ADV at www.morganstanley.com/ADV
Past performance is not a guarantee or indicative of future performance. Historical data shown represents past performance and does not guarantee comparable future results.
This material contains forward-looking statements and there can be no guarantee that they will come to pass.
Diversification and asset allocation do not guarantee a profit or protect against loss in a declining financial market.
This material should not be viewed as investment advice or recommendations with respect to asset allocation or any particular investment.
Morgan Stanley Wealth Management is the trade name of Morgan Stanley Smith Barney LLC, a registered broker-dealer in the United States.
Morgan Stanley Smith Barney LLC and Dynata are not affiliates.
© 2026 Morgan Stanley Smith Barney LLC. Member SIPC.
Referenced Data
| And when it comes to the current market are you? | ||
|
| Q4'25 | Q1'26 |
| Bullish | 56% | 56% |
| Bearish | 44% | 44% |
| Which of the following are you most concerned about when it comes to your finances? (Top 2) | ||
|
| Q4'25 | Q1'26 |
| Inflation | 45% | 47% |
| Tariffs | 33% | 27% |
| Market volatility | 21% | 20% |
| Current administration | 18% | 21% |
| A recession | 13% | 18% |
| Geopolitical conflict | 10% | 12% |
| Energy costs | 10% | 12% |
| Jobs market | 8% | 8% |
| Earnings | 11% | 8% |
| Fed monetary policy | 11% | 8% |
| None | 3% | 4% |
| Over the next quarter, do you think volatility will... | ||
|
| Q4'25 | Q1'26 |
| Top 2 Box | 65% | 57% |
| Greatly increase | 16% | 12% |
| Somewhat increase | 49% | 45% |
| Stay the same | 26% | 35% |
| Somewhat decrease | 8% | 8% |
| Greatly decrease | 1% | 0% |
| When it comes to your portfolio for the next six months are you considering any of the following strategies? | ||
|
| Q4'25 | Q1'26 |
| Make no changes to my portfolio | 41% | 52% |
| Change the allocations in my portfolio | 26% | 23% |
| Move out of cash and into new positions | 18% | 16% |
| Move out of current positions and into cash | 14% | 9% |
| Other | 1% | 0% |
| What industries do you think offer the most potential this quarter? | ||
|
| Q4'25 | Q1' 26 |
| Information technology | 56% | 60% |
| Energy | 42% | 49% |
| Health care | 34% | 33% |
| Real estate | 31% | 26% |
| Financials | 28% | 28% |
| Utilities | 26% | 28% |
| Industrials | 20% | 20% |
| Communication services | 20% | 19% |
| Consumer staples | 17% | 17% |
| Materials | 17% | 14% |
| Consumer discretionary | 10% | 9% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260128183457/en/
Media Relations: Lynn Cocchiola lynn.cocchiola@morganstanley.com
