Investors are slightly more optimistic about the financial markets than they were last quarter, still see opportunity for a soft landing and expect the economy to be in better shape by the end of the year, according to the Morgan Stanley Wealth Management quarterly investor pulse survey.

A survey of 906 self-directed investors, investors who have financial professionals handle their investment account management, and those who rely on both types of account management found that 89% of investors believe market volatility will remain the same or increase this quarter, and 52% are still bearish this quarter — but that’s down 3% from the last quarter.

Meanwhile, 40% of investors believe the economy has entered a recession, but that percentage is also lower than it was last quarter by 5%.

Although 55% of participants think inflation has peaked, 64% still consider it the main risk to their portfolio, and 49% said a possible recession is the top risk.

Despite continued worries about inflation and a recession, 51% of investors believe the Federal Reserve will be able to ensure a soft landing, while 64% believe the US economy will come out stronger by the end of the year.

Morgan Stanely thinks investors need to overcome their worries to ensure they can reap the benefits of staying invested in the market.

“Moving money to the sidelines may sound tempting, but for investors with a lengthier time horizon, staying the course may be beneficial in the long run,” said Mike Loewengart, head of model portfolio construction for Morgan Stanley Portfolio Solutions.

Michael Wilson, Morgan Stanley’s chief U.S. equities strategies and chief investment officer strategist, said last month that the recent rally isn’t likely to continue, as an earnings recession was “imminent,” but he also suggested that the bear market could end as soon as later this quarter or early in the next.