FEAR & GREED | Business News Q+A: Markets are acting first, asking questions later
Feb 16, 2026
Lachlan Halloway, Morningstar equity market strategist, provides market analysis and commentary. He discusses volatile share swings during reporting season. He explains why late results trigger big moves. He explores short-termism creating opportunities and whether AI threatens software, insurers and banks.
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Volatility Is Back In Earnings Season
- Volatility has returned to earnings season with large share-price swings around results.
- Markets now often act first and ask questions later, creating rapid reactions to company updates.
Exploit Overreactions For Long-Term Gain
- Use short-term market overreactions to find opportunities rather than panic.
- If you're a long-term investor, volatile drops can present buying chances because long-run cash flows seldom fall as much as intraday moves imply.
Austal's Rapid Fall And Rebound
- Lachlan uses the Austal double-counted contract example to show extreme intraday swings.
- Austal fell nearly 30% then rebounded 20% the next day, highlighting knee-jerk market moves.