Michael Constantino, CEO of Webull Canada, says rising debt, inflation, and volatility are reshaping investor behaviour, but not pushing Canadians out of the market
Rising debt levels and persistent inflation are forcing Canadians to be more deliberate with their money, but that hasn’t translated into a mass retreat from investing.
“We’re seeing Canadians being more selective in the way they invest,” Michael Constantino, CEO of Webull Canada, tells WP. “They’re being more cautious, waiting for the right entry points, watching earnings closely, and being a bit more conservative in how they invest.”
At the same time, he noted that financial pressure has sharpened investors’ focus on opportunity.
“Many investors are looking for opportunities to make their money work harder,” he says. “There’s still an appetite to invest, especially with platforms that give them the tools to manage risk effectively. The key is helping Canadians feel confident in making informed decisions even in a higher-debt, higher-inflation environment.”
That caution is clearly visible in retail investor behaviour this year. While Canadians remain active in markets, Constantino notes that they are responding more deliberately to major developments.
“Based on the activity on our platform, people are still investing, but they’re reacting more to major global headlines, which reflects what we’re seeing in the markets overall,” he says. “We’re also seeing more patience amongst investors. Canadians aren’t responding to every rally; they’re targeting particular moves and leveraging volatility as a strategic advantage.”
Economic strain has prompted some investors to rebalance toward more defensive positions, but Constantino stresses that this shift has been measured.
“We’re seeing a bit of a shift, but not a full retreat,” he says. “Some Canadians are leaning into more defensive holdings – financial and energy stocks had strong earnings, which has been reflected in investor portfolios.”
Growth exposure hasn’t disappeared, either. “Investors still have exposure to growth areas like AI,” Constantino adds. “It’s more about balance right now than avoiding risk altogether.”
Higher costs are also influencing how Canadians think about long-term savings, but Constantino says long-term goals remain firmly in place.
“It’s forcing people to reassess what’s realistic in the short term, but long-term goals haven’t disappeared,” he says. “Investors are still contributing, maybe in smaller increments, but they’re staying engaged in building their savings.”
That commitment comes with a more thoughtful mindset. “The mindset we’re seeing is: ‘I’ll keep going, but I’ll be smart about timing and where I allocate,’” he says.
In volatile markets, access to information has become increasingly important. Constantino sees investors leaning heavily on digital tools to stay grounded and disciplined.
“On the Webull platform, we see investors lean on tools like real-time data, earnings alerts, and our portfolio analytics to stay grounded when volatility picks up,” he shares. “Having that visibility into sector weighting and risk concentration helps investors make more deliberate decisions.”
Staying close to fundamentals remains central. “Staying close to earnings and major macro data points gives investors a clearer read on when to make moves,” he says.
As household budgets tighten, Constantino believes financial education has become essential rather than optional: “It’s extremely important. When every dollar counts, people want to understand what’s driving markets and how global events tie back to their individual portfolios.”
That demand for understanding is evident in how Canadians use investing platforms.
“We see that in the way investors use our platform – they’re tapping into the tools, data, and learning resources more than ever because they want to feel confident about the decisions they’re making,” he says.
While different generations respond differently to risk, Constantino said common signals are guiding everyone.
“Younger investors tend to be more comfortable with volatility,” he says. “They’re still active, but they’re a little more calculated now, similar to the broader trend.” Older investors, he noted, are leaning more toward stability, but “across the board, people are paying attention to the same signals: earnings, macro data, and global sentiment.”
Looking ahead, Constantino believes volatility may persist but that doesn’t mean opportunity disappears.
“Volatile periods like this often create opportunity,” he says. “Sectors like financials and energy continue to show strength, and AI-related names, despite the volatility, have had a strong run for a reason.” For long-term investors, he says the approach remains steady: “The goal is staying consistent, diversified, and using market volatility to build positions in solid investments.”
As for whether financial pressure will ease or intensify, Constantino said the signals to watch are clear.
“The big signals we watch are macro-driven: inflation trends, wage data, and how central banks guide rates,” he says. “We’re also paying close attention to earnings — this season has had mixed sentiments, and that provides insights on where sentiment for 2026 is headed.”
