Sixty percent of investors in a new quarterly survey said they are bullish, consistent with last quarter, Morgan Stanley Wealth Management reported this week.
However, fewer investors are optimistic about the American economy. Fifty-three percent agreed that the Federal Reserve will be able to deliver a "soft landing," down 7 percentage points from the first quarter.
Half of respondents said they do not plan to make changes to their portfolios for the next six months, compared with 42% who said this last quarter. Moreover, only 10% plan to move out of their current positions into cash, down from 14%.
In terms of the effects on their portfolios, investors this quarter are most concerned about inflation and the November elections. The number of those worried about rising prices ticked up to 53% from 49%, and from 26% to 31% about the elections.
Concerns about a recession eased from 24% to 20%, and held steady at 22% about market volatility.
"The U.S. stock market is coming off one of its strongest first quarters of the past 20 years, and so it should not be too large a surprise to see it pull back," Christopher Larkin, head of trading and investing at E-Trade from Morgan Stanley, said in a statement.
