Recent surveys from the Bank of Canada paint a concerning picture: both businesses and consumers are becoming increasingly pessimistic about the economic outlook. The culprit? The escalating trade war with the United States, which continues to inject uncertainty into markets and policy decisions.

This kind of macroeconomic headwind typically reshapes investor behavior across all asset classes. When traditional economies show signs of weakness and uncertainty peaks, capital flows become unpredictable—some flee to safe havens, while others turn to alternative assets seeking returns beyond conventional markets.

For those tracking market cycles, this data point deserves attention. Persistent negative sentiment from both household and corporate sectors usually precedes shifts in monetary policy and spending patterns. Whether this translates into recession fears or merely temporary volatility remains to be seen, but the trend is worth monitoring as it could influence broader financial market movements.