Investing.com -- U.K. retail investors responded to the recent market turbulence by splitting into two distinct camps, according to Nick Saunders, CEO of Webull U.K., who told Investing.com that volatility has ultimately proven a net positive for trading volumes on the platform.

Saunders explained that some investors have rotated into less volatile assets or cash, while a significant cohort has deliberately moved toward riskier stocks, often in short-term positions designed to capture gains before sentiment shifts.

"Trading more volatile stocks requires timing and keen risk control," he said, describing such moves as attempts "to ride a wave before it breaks on the shore."

Rather than retreating from equities, U.K. investors have increased their activity, Saunders noted.

Sharp price swings have brought stocks onto investors' radars that might otherwise have gone unnoticed, with the prospect of buying at a discount proving a particular draw.

“Some investors actually seek out volatility as a source of returns rather than treating it as a reason to sit on their hands,” Saunders added.

That dynamic appears to extend to the recent pullback in AI-related stocks, with Saunders confirming that U.K. investors have been buying the dip, though selectively.

"This is not all investors, though, and not all stocks," he said, noting that more volatile names are attracting interest while sentiment around steadier, core holdings remains cautious.

On geographic positioning, Saunders said UK investors have shown a clear preference for U.S. equities over U.K. and European names this year, a trend he expects to continue.

He attributed this to lower trading costs, including the absence of certain U.K. transaction taxes such as stamp duty, alongside greater availability of information and the broader scope of the U.S. market.

“The U.S. is very much in focus, and likely to continue to remain so,” he declared.