The majority (51%) of investors are now bearish, up 9 percent from last quarter.
Bears vs. Bulls
Investor sentiment is shifting, with a growing sense of caution taking hold. According to Morgan Stanley Wealth Management’s latest quarterly survey, half (51%) of retail investors now identify as bearish on the market, marking a nine-point (9%) increase from the first quarter of the year.
Bullish vs. Bearish: What’s the Difference?
The terms bullish and bearish describe how people feel about the market or a specific investment. If you’re bullish, you believe prices will go up. If you’re bearish, you expect them to go down.
Inflation and Tariffs
Inflation remains a top concern for investors, with two-fifths (41%) citing it as the biggest threat to their portfolios in Q2 2025, which is down slightly from 45% in Q1. Tariffs emerged as the second highest worry, with a third (35%) of investors naming them as a top concern, after not being mentioned at all in Q1, reflecting growing unease around global trade tensions and their potential to disrupt the markets. Meanwhile, market volatility held steady at one-quarter (24%), suggesting that while market swings are still on the radar of investors, inflation and tariffs are commanding more immediate attention.
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Morgan Stanley Wealth Management Pulse Survey Reveals Majority of Retail Investors Bearish
Research Author:
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.
Methodology:
This wave of the survey was conducted from April 1 to April 14 of 2025 among an online US sample of 912 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.
