Retail investors are entering 2026 with steady confidence, even as inflation and geopolitical risks remain top of mind, according to Morgan Stanley Wealth Management’s latest quarterly Retail Investor Pulse Survey. 

Bullish sentiment has held firm in the first quarter, with 56% of investors describing themselves as bullish—unchanged from the prior quarter. Inflation continues to dominate investor concerns, cited by 47% of respondents, far ahead of other risks. Worries tied to tariffs ranked second at 27%, though that figure declined six percentage points from last quarter. 

Expectations for market turbulence also moderated. Fifty-seven percent of investors expect volatility to increase this quarter, down eight percentage points from Q4. At the same time, more investors are choosing to stay put: 52% said they do not plan to make any portfolio changes over the next six months, up sharply from 41% last quarter. 

“As the year kicks off with a choppy market and continuing uncertain geopolitics, it’s encouraging to see investors stick to their investment strategies and play the long game,” said Chris Larkin, managing director and head of trading and investing at E*TRADE from Morgan Stanley. 

The survey also highlighted clear sector preferences. Information technology remains the top opportunity, with 60% of investors citing the sector’s potential as momentum around artificial intelligence persists despite recent volatility. Energy sentiment improved modestly to 49%, driven in part by rising data center power demand, while health care continued to attract interest from 33% of respondents, reflecting its defensive appeal. 

The survey was conducted from January 6 to January 26 among 978 U.S. investors across multiple wealth tiers.