More investors are considering portfolio changes amid a mixed backdrop
Morgan Stanley Wealth Management today announced the results of its quarterly retail investor pulse survey:
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- Bullishness ticks up. Over three in five (62%) investors are bullish this quarter, up from 56% last quarter, while 66% expect markets to move higher by quarter-end compared to 55% in Q2.
- Concern for volatility remains pronounced, but eases slightly. Fewer investors expect volatility to rise this quarter, with 61% anticipating an increase compared to 63% last quarter.
- While investors stay nimble. One in three (33%) are considering portfolio allocation changes over the next six months, an 8-percentage-point rise from Q2.
- Pre-IPO demand heats up. 75% of investors say their interest in gaining exposure to private companies before they go public increased in the last six months.
- Inflation and energy cost concerns climb. Inflation remains investors’ top financial concern at 52%, rising from 50% last quarter. While worries over energy costs came in second, rising to 22% from 18% tied with market volatility at 22%.
"Morgan Stanley's Global Investment Office has noted the market is showing signs of broadening beyond its narrow tech base, which means investors are looking far and wide for new investing opportunities," said Chris Larkin, Managing Director and Head of Trading and Investing, E*TRADE from Morgan Stanley. “So they’re not standing still. Despite persistent inflation concerns, investors remain open to shifts in market leadership and are increasingly looking beyond traditional markets.”
The survey explored investor views on sector opportunities for the third quarter of 2026:
- IT—Investor conviction in tech remained strong, with 57% viewing the sector as offering the greatest potential this quarter—consistent quarter over quarter. Enthusiasm around AI continues to underpin the sector’s appeal.
- Energy–As geopolitical volatility weighs on the sector, investor interest in energy fell to 43% from 49% last quarter yet remained in second place.
- Health care–Health care remained a strong sector pick, holding steady at third place with 34% (one point lower than last quarter) potentially reflecting investor interest in areas of the market that have historically demonstrated resilience amid volatility.
About the Survey
This wave of the survey was conducted from July 1 to July 20 of 2026 among an online US sample of 950 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
When it comes to the current market are you? |
||
|
Q2’26 |
Q3’26 |
Bullish |
55% |
62% |
Bearish |
45% |
38% |
Where do you predict the market will end this quarter? |
||
|
Q2’26 |
Q3’26 |
Rise (Net) |
55% |
66% |
Rise – 20% |
2% |
1% |
Rise – 15% |
9% |
10% |
Rise – 10% |
19% |
22% |
Rise – 5% |
25% |
33% |
0/Stay where it is |
12% |
13% |
Drop – 5% |
17% |
11% |
Drop – 10% |
11% |
6% |
Drop – 15% |
3% |
2% |
Drop – 20% |
2% |
2% |
Drop (Net) |
33% |
21% |
Over the next quarter, do you think volatility will... |
||
|
Q2’26 |
Q3’26 |
Top 2 Box |
63% |
61% |
Greatly increase |
15% |
13% |
Somewhat increase |
48% |
48% |
Stay the same |
25% |
30% |
Somewhat decrease |
11% |
9% |
Greatly decrease |
1% |
0% |
When it comes to your portfolio for the next six months are you considering any of the following strategies? |
||
|
Q2’26 |
Q3’26 |
Make no changes to my portfolio |
44% |
39% |
Change the allocations in my portfolio |
25% |
33% |
Move out of cash and into new positions |
19% |
18% |
Move out of current positions and into cash |
11% |
9% |
Other |
1% |
1% |
My interest in gaining exposure to private companies before they go public has…in the last six months. |
|
|
Q3’26 |
Top 2 Box |
75% |
Significantly increased |
15% |
Slightly increased |
60% |
Slightly decreased |
17% |
Significantly decreased |
8% |
Which of the following are you most concerned about when it comes to your finances? (Top 2) |
||
|
Q2’26 |
Q3’26 |
Inflation |
50% |
52% |
Energy costs |
18% |
22% |
Market volatility |
22% |
22% |
Geopolitical conflict |
20% |
16% |
Current administration |
17% |
15% |
A recession |
13% |
14% |
Tariffs |
18% |
12% |
Earnings |
10% |
11% |
Fed monetary policy |
8% |
10% |
Jobs market |
6% |
7% |
None |
2% |
2% |
What industries do you think offer the most potential this quarter? |
||
|
Q2’26 |
Q3’26 |
Information technology |
56% |
57% |
Energy |
49% |
43% |
Health care |
35% |
34% |
Financials |
28% |
29% |
Real estate |
28% |
28% |
Utilities |
26% |
26% |
Industrials |
21% |
22% |
Communication services |
18% |
21% |
Materials |
15% |
17% |
Consumer staples |
16% |
15% |
Consumer discretionary |
9% |
8% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260720496000/en/
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Alexa Mazzei - alexa.mazzei@morganstanley.com
