Wall Street Traders Anticipate Strong Potential for Year-End Stock Surge Fueled by FOMO
Market Trends: Traders on Wall Street suggest that stocks may rise towards the end of the year due to under-invested participants driven by fear of missing out (FOMO) and favorable market conditions related to artificial intelligence and deregulation.
Retail vs. Institutional Investors: Retail investors are currently the primary price setters in the market, actively buying, while institutional investors are seen as under-exposed.
Positive Market Indicators: Morgan Stanley highlights positive developments outside the AI sector, noting strength in global banking and a revival in the real economy, as evidenced by the performance of the Invesco KBW Bank ETF and the iShares Transportation Average ETF.
Retail Investor Activity: Recent data from JPMorgan indicates that retail investors have been consistently buying into the market, contributing to a strong overall market performance, with the S&P 500 up over 16% in 2025.
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- Bitcoin Trust Filing: Morgan Stanley has filed an S-1 with the SEC to launch the Morgan Stanley Bitcoin Trust, a spot ETF that will directly hold Bitcoin, marking a significant expansion in its crypto footprint and likely attracting more institutional investors.
- Custody Arrangements: The fund plans to use Coinbase and Bank of New York Mellon as Bitcoin custodians, with most assets stored in offline cold storage to ensure security, while some BTC may temporarily move into trading wallets during share creations and redemptions to enhance liquidity.
- Market Tracking Mechanism: The ETF will passively track Bitcoin's price using the CoinDesk Bitcoin Benchmark 4PM New York Settlement Rate, ensuring that investors can accurately reflect market dynamics, which is expected to bolster investor confidence.
- Digital Asset Strategy Expansion: At the Strategy World 2026 event, Morgan Stanley revealed broader ambitions in digital assets, including native custody, exchange solutions, and lending services, demonstrating its long-term commitment to the crypto space and addressing client demand for institutional-grade solutions.

Infrastructure and AI: Infrastructure investing is increasingly associated with the development of artificial intelligence technologies.
Broader Mission: Sadek Wahba, founder of I Squared Capital, emphasizes that infrastructure's role extends beyond AI to fostering global economic development.
Investment Scale: I Squared Capital manages a substantial $55 billion in private equity focused on infrastructure projects.
Global Impact: The firm aims to leverage infrastructure investments to drive economic growth and development worldwide.
- Government and Corporate Relations: OpenAI CEO Sam Altman stated at the Morgan Stanley conference that the government should be more powerful than private companies, emphasizing the responsibility of businesses in the democratic process, which could impact corporate-government collaborations.
- Anthropic's Challenges: Anthropic CEO Dario Amodei criticized Altman's relationship with the Trump administration, noting that the company has not given 'dictator-style praise' to Trump, which may affect its reputation and partnership opportunities in the industry.
- Tensions with the Department of Defense: The Defense Secretary labeled Anthropic as a 'Supply-Chain Risk to National Security' and directed all federal agencies to cease using its technology, potentially leading to a decline in its market share.
- Rapid Growth of OpenAI: OpenAI recently announced a $110 billion funding round at a $730 billion valuation, with an annual revenue run rate of $25 billion, showcasing its ability to expand rapidly in a highly competitive market.
- Bitcoin ETF Filing: On March 4, Morgan Stanley filed an amended Bitcoin ETF application with the SEC, naming Coinbase Custody and Bank of New York Mellon as custody partners, indicating aggressive expansion in the crypto space, with the Trust passively tracking Bitcoin's price to avoid speculation.
- Loan Agreement Details: Morgan Stanley provided Core Scientific with a $500 million loan facility, which can be extended to $1 billion, with an interest rate of SOFR plus 250 basis points, aimed at funding real property acquisitions and energy contracts, thereby enhancing the company's financial flexibility.
- Strategic Shift: Core Scientific is pivoting from Bitcoin mining to high-density colocation services for AI clients, expecting to monetize most of its Bitcoin reserves by 2026 to support this transition, currently holding 2,537 BTC valued at $222 million.
- Market Outlook: In January, Core Scientific sold over 1,900 BTC for approximately $175 million, leaving around 630 BTC, with the CEO stating that Bitcoin mining is now in a “runoff” phase, primarily maintaining operations to meet minimum power commitments while focusing on AI-related business.
- New ETF Launch: Morgan Stanley Investment Management has launched the Eaton Vance Preferred Securities and Income ETF (NASDAQ:EVPF), marking the 19th ETF strategy introduced in 2023, aimed at providing current income and total return, thereby expanding the investment options available on its ETF platform.
- Active Management Strategy: EVPF employs a flexible, actively managed investment approach focused on preferred securities, seeking to deliver attractive after-tax yields relative to traditional fixed income through a research-driven process that enhances portfolio diversification and income potential.
- Transparent Fee Structure: The ETF features a gross expense ratio of 0.39% and a net expense ratio of 0.20%, with the adviser voluntarily agreeing to temporarily waive a portion of its management fee until June 30, 2026, ensuring that the fund's total annual operating expenses do not exceed 0.20%, thus enhancing investor returns.
- Optimistic Market Outlook: The management team maintains a constructive outlook for the preferred securities asset class, citing the economic backdrop, moderating inflation, and anticipated gradual Fed easing as key factors to watch, which are expected to create tax-advantaged income-generating opportunities for investors.

Launch of New Investment Management Strategy: Morgan Stanley Investment Management has introduced a new strategy focused on preferred securities and income generation.
Target Audience: The new strategy is designed to cater to investors seeking stable income through preferred securities, which are hybrid financial instruments.









