It's been a bumpy ride already but what are the top risks in the months ahead?
Canadian investors are getting used to navigating uncertainty, with this the only thing that they can be sure of in 2025.
As the second half of the year gets underway, there’s little expectation that the market volatility and economic concerns that have shaped the first six months of 2025 will disappear. In fact, along with their US peers, Canadian investors are ready for a bumpy ride.
Not that that it’s all bad. Most investors are growth-focused and expect to meet their investment goals, despite the challenging conditions, according to a new mid-year report from investment and trading platform Moomoo.
Its survey of North American investors in the second quarter of 2025, found that inflation continues to influence goals and investment decisions, prompting investors to diversify their portfolios and trade more frequently.
The tariffs that shocked the world back in April have not gone away – President Trump’s trade policy remains a seemingly knee-jerking work in progress – but investors have shifted towards a more neutral stance.
The initial tariff-fueled selloff at the year's start gave way to market climbs and overall, investors held on through the dip and emerged in a solid financial position at the end of the half with 50% of investors having made money in 2025 compared with 41% at the same point in 2024. Almost a quarter lost money and slightly more broke even.
However, uncertainty surrounding inflation, economic conditions, and geopolitical developments, particularly watched by Canadian investors) are contributing to an expectation of increased volatility in the second half of the year.
Investors anticipate only a few Federal Reserve rate cuts in 2025, even with the possibility of a recession and rising unemployment on the horizon. This cautious tone underscores a need for robust risk management and agile portfolio strategies.
"While more investors report having made money in 2025 compared with the same period last year, the uncertainty surrounding inflation drives mixed reactions among users,” says Justin Zacks, Moomoo’s VP of Strategy. “However, investors trade more often with a more diversified portfolio and goals.”
More than eight in ten investors have added funds to their trading account in 2025 and 47% of these are adding funds to their accounts on a weekly or monthly basis.
The survey also found an increasing reliance on multiple trading applications with investors actively seeking information at their fingertips, demonstrating a strong preference for accessible, real-time data and insights. The survey points to a growing adoption of advanced features like AI and extended hours trading, which are gaining considerable traction among users.
“Even though they are expecting more volatility in the second half, investors believe trading through self-direct platforms help them achieve their financial freedom goals," concludes Zacks.
