More than half of investors point to IT as the sector with the greatest potential, said Morgan Stanley Wealth Management
Despite the ongoing geopolitical volatility, the environment in Wall Street’s wealth management circle has remained resilient, revealed Morgan Stanley Wealth Management’s quarterly retail investor pulse survey.
As per the survey, some 55% of the investors remain bullish in Q2 2026, slightly below from last quarter’s tally of 56%. Inflation remains the top concern among 50% of those surveyed, followed by concern about geopolitics (20%) and rising energy costs (18%). About two in three investors (63%) expect volatility to rise, six percentage points higher than last quarter.
“Upcoming midterms add to market anxiety. Nearly half (48%) of investors worry midterm elections could affect stock performance. Amid uncertainty, investors stay engaged. Half (50%) of investors have increased the amount of time they devote to their portfolio this quarter—up from 41% last quarter,” the study remarked.
“With geopolitical concerns, policy uncertainty and higher costs, market whiplash is very real, making day-to-day moves feel noisy. But rather than pull back, many investors remain engaged—adjusting to volatility and looking for opportunities in a more complex market backdrop. A healthy dose of volatility is a normal part of market dynamics, and commitment to an investing plan is key,” said Chris Larkin, Managing Director and Head of Trading and Investing, E*TRADE from Morgan Stanley.
“With AI disruption continuing to move the market, more than half of investors (56%) point to information technology as the sector with the greatest potential this quarter. Energy. Amid spiking oil prices, investor interest in energy is unchanged this quarter, holding steady at 49%,” Morgan Stanley Wealth Management commented.
As market risks shift, investors’ interest in health care, known for its relative stability during uncertainty, ticked up 2 percentage points to 35%.
This quarterly retail investor pulse survey was conducted online from April 1 to April 20 of 2026, among a sample of 940 self-directed investors, investors who fully delegate investment account management to financial professionals, and investors who utilize both the routes.
