Investors, buffeted by trade and economic volatility, now want their portfolios to let them SWAN

July 08, 2025 at 11:02 AM EDT

Inflation remains the top concern of everyday investors, with worries about an economic slowdown and market volatility also combining to create more feelings of unease in 2025, a Morningstar survey of investor attitudes finds.

The financial information company’s survey, presented at its annual investment conference held recently in Chicago, showed 46% of investors were most concerned about inflation, an attitude that was “mostly negatively impact by trade and and economic actions, said Joe Agostinelli, senior director of market research at Morningstar.

“Half of long-term investors show a shift to reacting to market volatility this year over 2024, often leading to feeling anxious and nervous,” he said.

As a result, investors have become more news-aware this year, with a Morningstar index of investor engagement climbing to 70 from 64 in its 2024 survey.

“It may be the environment we are in, so people are a little more focused this year,” Agostinelli said.

The uncertainly in the economic and geopolitical landscape has prompted investors to rethink what they want their portfolios to deliver in 2025, he said, and it is not matching the back-to-back 20% returns of the S&P 500 over the last two years.

“The No. 1 reason they are likely say their portfolio is successful is that there is no reason to be concerned about it,” Agostinelli said. “But a large percentage do have concerns.”

After meeting the sleep well at night test, strong financial performance is still the No. 2 measure of portfolio success. But the survey showed investors mostly want their nest egg to keep them stable and comfortable, he said.

“Having enough money is is the goal, whether that means being wealth or just being able to cover expenses,” he said.

Investors happier when advisors around

Investors who work with a financial advisor are more likely to be satisfied with their financial situation, the survey found. While only 60% of do-it-yourself investors report they are satisfied overall, 77% of those who use a hybrid DIY-advisor approach and 83% of those who let advisors handle their entire portfolio are happy with their performance.

“But advisors can’t take it for granted that their clients will be satisfied,” said Thomas Aviles, vice president of business development at Morningstar. “There are gaps in the perspectives of the advisor and the client (as to how their relationship is working). Advisors have to show their worth.”

Among other highlights from the survey:

AI use in investing is still relatively low, with just 10% of investors expected to use artificial intelligence tools on their finances this year
About one-quarter of investors own cryptocurrencies to one degree or another
The average portfolio has 2.3 alternative investments like crypto or gold in it, but 44% of investors don’t own any alternatives and that number jumps to 55% if you exclude the crypto investors. 72% of advisors offer alternative investments to clients as portfolio diversifiers while clients look at alternatives as a chance for high returns
Younger investors, regardless of how they see their portfolio mechanics, plan to distribute much more of their wealth to charities over the course of their lives
For financial planners, the first year of a client relationship is the key and newer clients report needing a lot more interaction and hand-holding early on

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Investors, buffeted by trade and economic volatility, now want their portfolios to let them SWAN

Investors happier when advisors around

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