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.

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