Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Portfolio > Portfolio Construction

Most Investors Not Shifting Portfolios Ahead of Rate Hike: Morgan Stanley

Your article was successfully shared with the contacts you provided.

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.

Investors were mixed in their view on whether a rate hike would be good or bad for the economy, with 31% saying good, 24% bad, 23% neither good nor bad and 22% unsure.

According to the poll, 57% of respondents had at least some concern that prolonged low interest rates had produced a consumer asset bubble, but only 12% said this was a major concern.

Investors’ economic outlook was positive. Seventy-six percent of survey participants expected the global economy to be the same or better over the next 12 months, and 78% had this expectation of the U.S. economy.

— Check out Preparing Clients for Fed Interest Rate Hike on ThinkAdvisor.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.