Morgan Stanley Wealth Management’s latest Investor Pulse poll, released Wednesday, finds that 62% of retail investors and 75% of millionaires expect the U.S. Federal Reserve to raise interest rates by the middle of next year.
Among respondents predicting a rate hike, 38% looked for an increase of 0.5% and 24% a rise of 0.25%. Fourteen percent were unsure of the magnitude.
During the summer, Morgan Stanley surveyed 1,000 U.S. households with at least $100,000 in investible assets, one-third of which had investible assets of $1 million or more.
Asked what actions they were taking ahead of a possible rate increase, 55% of respondents, including millionaires, said they were not changing fixed income allocations, selling real estate investments or otherwise fine-tuning their investment portfolios.
At the same time, 19% said they had paid off consumer debt, 11% had bought a car or other big-ticket item and 10% had refinanced a mortgage.