Over half of investors in a recent survey admit to feeling bullish over the market today compared to last quarter, but other reports show differing consumer sentiments.
Morgan Stanley Wealth Management research found that 61% of survey respondents would classify themselves as bullish, up 12% compared to the prior quarter. The number of respondents who said they felt bearish over the market dropped significantly, from 51% in Q2 to 39% in Q3.
Despite reports of financial uncertainty due to inflation and increased market volatility, Morgan Stanley’s research shows confidence among investors. While inflation is still a leading concern among respondents, it dropped by two percentage points to 39%, followed by President Donald Trump’s tariffs (33%), and market volatility (24%).
A majority of those worried over the market are choosing to invest in sectors abroad, Morgan Stanley findings show, at 58% of respondents who showed interested in markets outside of the U.S.
“Amid tariff and geopolitical uncertainty, we’re still seeing the stock market rallying to all-time highs,” said Chris Larkin, managing director and head of Trading and Investing, E*TRADE from Morgan Stanley. “While headwinds may be on the horizon, investors are holding their ground in sectors like tech and financials, while also looking abroad for new investment opportunities.”
The findings are a stark change compared to recent headlines stressing declines in financial confidence as a response to increased market volatility. Equitable last week reported findings revealing that 58% of respondents are worried over the economic environment potentially disrupting their financial goals.
“Americans are navigating a financial fog — concerns about tariffs, geopolitical uncertainty, market volatility and lingering recession fears have left many second-guessing their next move toward a secure financial future,” said Nick Lane, president of Equitable.
Equitable’s research does note that when working with a financial professional, investor confidence is likelier to go up. Fifty-four percent of those receiving advice said they plan to make changes to their investments or product mix, compared to 36% of respondents who did not seek advice.
Further, 80% of survey respondents who work with a financial advisor turn to their advisor first for advice, Equitable reported. This was followed by financial news outlets (37%) and friends and family (33%). Those without an advisor relied first on friends and family (57%), then financial news outlets (32%) and social media platforms like TikTok and Instagram (25%) for financial guidance.
With contrasting headlines and clashing findings reported every day, Equitable touches on the importance of organizing a financial plan that can weather most market conditions. “We encourage clients to stick with a plan that reflects their personal goals and risk tolerance — not the headlines of the day,” said Jody D’Agostini, a financial advisor at Equitable.
Morgan Stanley’s report surveyed 924 investors and was conducted throughout mid-July. It was broken into three investable assets: less than $500,000; between $500,000 to $1 million; and over $1 million.
Equitable’s research included responses from 1,000 U.S. adults ages 18 or older and was fielded in mid-May.
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