{"id":513731,"date":"2026-03-02T11:07:22","date_gmt":"2026-03-02T11:07:22","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/513731\/"},"modified":"2026-03-02T11:07:22","modified_gmt":"2026-03-02T11:07:22","slug":"volatility-the-new-normal-for-investors-and-not-just-because-of-ai-concerns","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/513731\/","title":{"rendered":"Volatility the new normal for investors \u2013 and not just because of AI concerns"},"content":{"rendered":"

\"ColinSave<\/p>\n

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While the local market\u2019s reporting season boosted the ASX200 to its third straight week of gains on Friday, the conversation was not about the sectors delivering ahead of expectation; it was the extreme volatility that spared no one.<\/p>\n

The extraordinary movement in share prices from market heavyweights like Woolworths<\/a>, Commonwealth Bank, BHP and CSL showed that you didn\u2019t need AI exposure to turbocharge the market\u2019s reaction to your stock price.<\/p>\n

\"TenTen Cap fund manager Jun Bei Liu, says a massive rotation from Aussie software stocks to miners and banks have contributed to the unprecedented earnings season volatility.Dominic Lorrimer<\/p>\n

Barrenjoey quant strategist Jason Swinbourne said the ASX is \u201cexperiencing one of the most volatile reporting seasons in history\u201d.<\/p>\n

Heading into the final week of reporting, Barrenjoey pointed to financials as the most volatile, with Zip down 35 per cent and AMP dropping 27 per cent, followed by healthcare, with Pro Medicus down a whopping 24 per cent, followed by consumer discretionary, with high-profile Temple & Webster down 33 per cent.<\/p>\n

Ten Cap portfolio manager Jun Bei Liu agreed, saying half of the companies that reported this earnings season experienced a share price reaction of more than 5 per cent on the day.<\/p>\n

\u201cThat is unprecedented,\u201d she said.<\/p>\n

\u201cWe\u2019ve seen incredible sell off in a lot of software based, technology-based businesses because investors are questioning their long-term future.\u201d<\/p>\n

Ten Cap portfolio manager Jun Bei Liu<\/p>\n

\u201cNormally, big companies don\u2019t report results that surprise massively on the upside, but \u2026 the Commonwealth Bank is up almost 20 per cent for the month.\u201d<\/p>\n

This week, Woolworths experienced its best day ever with a 13 per cent surge after showing it was regaining its competitive footing against Coles after years of underperformance.<\/p>\n

This was followed by Coles\u2019 9 per cent drop<\/a> after its results on Friday.<\/p>\n

\u201cShare prices are sometimes signal, sometimes noise,\u201d Morningstar market strategist Lochlan Halloway said. \u201cWhen an established, moated business with defensive cash flows posts a soft half and is met with a double-digit sell-off\u2014 increasingly common in today\u2019s market\u2014 the odds favour noise.\u201d<\/p>\n

\"CommonwealthCommonwealth Bank chief executive Matt Comyn delivered a result that put the bank back among the hot stocks for reporting season.Oscar Colman<\/p>\n

The growing financial influence of index funds, which match the market\u2019s performance by buying stocks on the rise and selling falling stocks, is blamed for amplifying both good and bad news from reporting season. Algorithmic traders were also blamed for the rising volatility.<\/p>\n

But Liu also points to the massive \u2013 and desperate \u2013 rotation from out-of-favour tech stocks to Aussie staples like the banks and miners, saying they\u2019re partly to blame.<\/p>\n

Related Article\"Wisetech<\/a><\/p>\n

\u201cWe\u2019ve seen incredible sell-off in a lot of software-based, technology-based businesses because investors are questioning their long-term future,\u201d Liu says.<\/p>\n

She said this has caused a \u201cpanic\u201d among some fund managers who have charged into market sectors where earnings are being upgraded.<\/p>\n

\u201cSo if you look at where the earnings being upgraded is the resources, it\u2019s the banks, and especially in the larger caps,\u201d she says.<\/p>\n

AMP chief economist Dr Shane Oliver also backed the rotation trade, saying rising profits \u2013 led by the miners and banks \u2013 are propelling the market higher, despite stretched valuations.<\/p>\n

He says the rotation trade is likely to continue to help Australian and non-tech shares, but with the market trading on 20 times earnings, it means further volatility.<\/p>\n

\u201cI think we\u2019ll see gains, but it\u2019s going to be fairly rough,\u201d he said.<\/p>\n

Liu has a more positive outlook, forecasting an eight to ten per cent return for the year and says investors don\u2019t have to risk exposure to tech stocks to get there.<\/p>\n

\u201cWe don\u2019t need to actually try to figure out whether software businesses are a good place to be. I just think there are plenty of other sectors that you can look into.\u201d<\/p>\n

The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning<\/a>.<\/p>\n

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\"ColinColin Kruger<\/a> is a senior business reporter for the Sydney Morning Herald and The Age.Connect via email<\/a>.From our partners<\/p>\n","protected":false},"excerpt":{"rendered":"Save You have reached your maximum number of saved items. Remove items from your saved list to add…\n","protected":false},"author":2,"featured_media":513732,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[256,254,255,64,63,105],"class_list":["post-513731","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-au","tag-australia","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/513731","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=513731"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/513731\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/513732"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=513731"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=513731"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=513731"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}