FEAR & GREED | Business News Q+A: Investing in volatile markets + two stocks to watch
Nov 24, 2025
Lochlan Halloway, an Equity Market Strategist at Morningstar, dives into the current fears gripping Wall Street and the ASX. He shares insights on navigating volatility, emphasizing the importance of company fundamentals over macro trends. Expect uncertainty continues until 2026, driven by geopolitical issues and monetary policy. He highlights the undervaluation of Domino's and the promising future of IDP Education amid market challenges. Halloway also advocates for diversifying away from concentrated markets, particularly by exploring mid- and small-cap opportunities in Australia.
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Volatility Is Part Of Investing
- Volatility is a constant companion in equity markets and the price of admission for returns.
- Investors must accept risk if they want to earn market returns.
Prioritise Company Fundamentals
- Focus on knowable company-level factors like moats, capital allocation and balance sheets.
- Avoid obsessing over short-term macro predictions like each Fed meeting when choosing equities.
Avoid Overconcentration In Mega Caps
- Diversify and avoid overconcentration in a handful of mega-cap stocks.
- Look beyond the Magnificent Seven to reduce reliance on one theme or outcome.