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Back in a bear market

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By Michael O’Connor

Investors' wounds deepened last week as the S&P 500 fell nearly 3%, declining for the fourth week out of the past five.

The NASDAQ precipitous decline continued into Monday, putting the tech-based index into bear-market territory, as it fell more than 20.0% below a recent high set in November. While this drop may seem alarming, the NASDAQ has compounded at 21% a year for the last five years despite experiencing three bear markets in the past five years.

All is not lost.

To be blunt, the outlook remains very much uncertain. The degree and duration of the war are huge unknowns that can change rapidly and have enormous implications on economic growth, inflation, and interest rates.

With that said, my base case remains the same. The war can subside over the coming months allowing inflation to moderate and sentiment to revert. With strong consumer demand, robust US household balance sheets and money on the sidelines, earnings can remain elevated, and US economic growth can remain positive.

Valuations have also become more compelling at current levels, with the S&P 500’s forward P/E now below its pre-pandemic levels. Undoubtedly multiples can contract further in the short-term if the geopolitical tensions worsen, but I believe a reversal is likely by year-end as the current headwinds subside.

Winners

The dating App Bumble jumped 28.5% last week as the firm's revenue figures grew 25.7% year-over-year.

Despite Bumble experiencing its strongest trading day ever, it still sits 70% below its IPO price. The current inflation-induced growth stock distain will ensure that a quick reversal to previous highs remains unlikely despite last week's success.

Losers

It appears that investors previously boasting the endless potential of every high-growth SaaS company in existence are now cutting all ties and denying any involvement, quickly reclaiming Warren Buffet as their one true leader.

DocuSign tops the bill this week as the poster child of the discarded pandemic darling. Already down 70% from all-time highs, the stock plummeted another 20% following Thursday's less than inspiring earnings call.

In keeping with the theme of the quarter, the company reported solid Q4 results, but weaker guidance sent the stock plummeting. Lower than expected revenue guidance and a predicted annual growth of only 13% for a company that is still pre-earnings brought the growth narrative very much into question.

Outlook

Lower valuation multiples are appealing, but investors are acutely aware of the dangers that lie ahead over the short term. Inflation has surged to a 7.9% annual rate, a number that looks likely to remain elevated as commodity prices rise, while upcoming interest rate hikes represent the potential for a policy misstep by the Fed.

Volatility is likely to remain, but some sectors will absorb the impact better than others. Short duration, long value remains the order of the day with a tilt towards energy, consumer staples and real estate.

To learn how to start your investing journey, go to the islandinvestor.com.

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Powerful photo display at St Mary’s brings Ukraine conflict home

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A unique photo exhibition has been installed on the railings outside St Mary’s Church of Ireland in Killarney town centre, offering a stark reminder of the human cost of the war in Ukraine. 

Organised by the local branch of the ‘Future of Ukrainian Nation’, the display serves as a bridge between the local community and the families who have fled to Kerry.

The display features portraits of several Ukrainian and Irish soldiers who have died or remain missing in action, as well as members of the media killed on the front line. 

Most poignantly, it captures the homes and memories of refugees now living in Killarney, showing the physical destruction of the lives they left behind.

Iryna Synelnykova, a teacher and activist with the “Future of Ukrainian Nation,” shared the story of her family’s summer house. The home was located on Potemkin Island in the Kherson region, along the Dnipro River. Iryna recalls countless happy moments shared there, but tragedy struck on July 6, 2023. Following the explosion of the Kakhovka hydroelectric station, the island and the house were submerged. As the water receded, Russian artillery inflicted further destruction. The area is now mined and occupied by military personnel, leaving the family with no way to return.

Another selection of photos captures the destroyed apartment building of Maryna Ivashenko in Mariupol, which was levelled by Russian attacks. 

The exhibition also featured the family home of another  resident in Mariupol.

 In that instance, 17 shells struck the house, with one hitting the kitchen while the family was hiding in the basement. Though they miraculously survived and escaped to Killarney, they have no home to return to.

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Beaufort Engineer honoured with national emerging leader award

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Beaufort Engineer honoured with national emerging leader award

Beaufort native Danny Pio Murphy has been named the recipient of the Emerging Leader Award at the National Diversity & Inclusion Awards 2026.

The ceremony, hosted by the Irish Centre for Diversity, recognises individuals who have made significant strides in promoting inclusion and belonging within Irish workplaces.
Danny Pio, a Chartered Engineer and Associate Director at DBFL Consulting Engineers, was singled out for his work in transforming the engineering profession. As a founding member of DBFL’s internal EDI team, he was instrumental in developing the company’s first Diversity Action Plan in 2020.
This initiative led to the firm achieving the Gold Investors in Diversity Accreditation in 2025, a standard held by only 28 organisations across the country.
Beyond his professional role, Danny Pio co-founded and currently chairs the Engineers Ireland Inclusion and Diversity Society. In this capacity, he helps shape inclusive practices for the body’s 30,000 members and influences the wider profession of over 75,000 engineers.
Speaking at the awards, Danny Pio highlighted the personal nature of his work: “This work has always been personal to me.
It comes from knowing what it feels like to question whether you belong in a space. Sometimes leadership is about being the person who tells others, ‘You belong here.’”
He further noted that diversity is essential for the future of the industry, stating that solving challenges like housing and climate change requires a broad range of perspectives.
While leading national transport and infrastructure projects, the Beaufort man hopes this recognition will encourage more young people from underrepresented backgrounds to pursue careers in engineering.

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