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A lesson in what not to do

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By Michael O’Connor

The S&P 500 ended last week down 14%, a bitter pill to swallow for many investors. Still, these losses pale in comparison to the earth-shattering declines that some of the more speculative sides of the market are currently experiencing.

Today's article – A lesson in what not to do.

The tech-led NASDAQ index is down 22% in 2022. ARKK, once the highest-flying tech fund on Wall Street, has come crashing down to earth, down over 70% from its highs and lastly, spare a thought for those taking maximum risk; NFT and Altcoin traders are getting their faces ripped off as we speak.

But didn't we all know this was going to happen?

Didn't the incessant and illogical rise of these speculative Crypto and Tech positions have to end in tears eventually?

The simple answer is yes.

But the 'when' and 'how' were always unknown.

When everyone is playing and winning, it's easy to convince yourself that you can play and win as well. It's hard to imagine the music stopping when it has been playing for so long.

People do crazy, illogical things all the time, even when they know better. This isn't the first time that greed pushed investors towards self-destruction, and it certainly won't be the last.

This article isn't intended as a snide rebuke of the investors who hold these positions. Many of those currently watching their trading accounts crater also made phenomenal gains in 2020 and 2021.

This is merely a cautionary tale highlighting that markets are cyclical, investment strategies come in and out of favour, and nothing lasts forever.

Most importantly, always know the difference between speculating and investing.

As humans, we are drawn to speculation. We buy lotto tickets not based on probability but on hope. You can ignore the statistical improbability of winning by uttering four naïve but equally alluring words: "ya, but what if".

After all, technically speaking, 'it could be you'.

In recent years, many people 'invested' in their stock position based on the same rationale. It wasn't based on the company's solid fundamentals or attractive free cash flows; it was determined purely on the basis of 'what if?'. What if it continues going up? What if it doubles again? Let's face it, for many; this argument can be far more enticing than any precise financial projections.

There is nothing technically wrong with this speculative approach, provided you realise you're doing it, and it is done in small doses. Still, you need to separate this from your investing portfolio. They're not the same thing.

90% of your assets should be positioned to generate returns over the long term. Your focus should not be on betting it all on a low probability outcome with the outside promise of winning it big.

This seems obvious, but many convince themselves they are investing based on probability and risk-adjusted returns when they are actually just closing their eyes, crossing their fingers and spinning the wheel.

Make sure you know the difference.

Investing 101

Create a balanced and diversified portfolio of equities, real estate, commodities and alternatives based on your view of the world in the future, your time horizon and your risk tolerance.

Invest in indexes you believe will be successful over the long run and then allow enough margin for error through diversification to protect when you are wrong.

And you will be wrong, but that's ok. You just need to be right more often than you are wrong.

If you would like to learn more about how to start investing, go to theislandinvestor.com.

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Help reduce the appearance of cellulite  

By Jill O’Donoghue from Killarney Toning and Beauty Studio Needless to say we all know what cellulite looks like, but there are many ways to reduce its appearance and help […]

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By Jill O’Donoghue from Killarney Toning and Beauty Studio

Needless to say we all know what cellulite looks like, but there are many ways to reduce its appearance and help us look and feel better about it.

Yes, people often assume it’s down to a weight issue but it is associated with diet and exercise. It can affect all ages, male and female. There are many ways to help reduce and eliminate it.

Nothing can substitute for eating a healthy diet and getting enough exercise. Just as with other signs of ageing, cellulite is best managed first and foremost by focusing on maintaining a healthy weight long term. But certain topical treatments may help it become less noticeable and improve skin’s overall appearance, if used regularly. Dry body brushing is one technique to try by brushing upwards every day towards the heart for increased blood circulation.

Using anti-cellulite products can help if you are doing regular exercise and watching your diet, but if you feel you need a boost to get you headed in the right direction, there is a few different salon treatments that can be of benefit.

The Universal Contour Body Wrap is a great treatment which results in inch loss due to the detoxing effect of the sea clay or also the Electro Cellulite Massage rollers (ECM) by CACI Machine, which is a 12-session course over four weeks, this is recommended for desired results.

Pilates is always an amazing lifestyle choice. Having the toning tables for the past 30 years in Killarney, we are lucky to hear the amazing results from our clients past and present. Some have even been with us since we started! The male and female reviews have reported reduced cellulite with weekly appointments, improved posture, increased energy and mostly reduced cellulite.

To book an appointment or to find out more information, call 064 6632966. 

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Car dealers are now hubs for Ukrainian donations

Two Kerry-based car dealers are part of a national campaign to provide essential aid for Ukraine. Donagh Hickey Motors in Rathmore and Adam’s of Tralee are the two local garages […]

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Two Kerry-based car dealers are part of a national campaign to provide essential aid for Ukraine.

Donagh Hickey Motors in Rathmore and Adam’s of Tralee are the two local garages that have signed up for the project.

Under the scheme, the garages will be used as collection hubs for essential equipment that will be transported to the war torn country.

“We have a very large and loyal customer base and we are appealing through them to make donations,” Adam’s of Tralee General Manager, Marcus O’Shea, told the Killarney Advertiser.

“Any dealer could have signed up for this but we are one of only two in Kerry to do so.”

The garages, following advice from humanitarian agencies in Ukraine, have created a very specific list of what is urgently needed out there.

These include generators, solar battery chargers, batteries, power banks, flashlights, drones and tablets.

Medical equipment like First Aid kits (NATO standard) and other medical items are also sought.

People can assist by either dropping goods to the two garages or by making a donation via www.safeharbourforukraine.org.

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