News
A lesson in what not to do

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.
News
American choir to perform in St Mary’s Cathedral
Music lovers are in for a rare treat on Monday night when a top US choir visits Killarney. The Colquitt Accapella choir under the direction of Mr. Jimmy L. Jarvis […]
Music lovers are in for a rare treat on Monday night when a top US choir visits Killarney.
The Colquitt Accapella choir under the direction of Mr. Jimmy L. Jarvis Jr is from the city of Moultie in the state of Georgia in the United States of America.
The choir performs multiple times a year and also produces and performs a large musical every year, with the latest production being ‘The Addams Family’ which was a sold out success.
The Colquitt Choir will be performing at St Mary’s Cathedral thanks to support form the KDYS.
More information is available from the KDYS on 066 71 21674 or www.kdys.ie
News
HeartBeat’s cook off – be early!
This month HeartBeat Killarney has come up with a new slant on safe cooking. A free copy of the cook book ‘101 Square Meals – Easy recipes for everyday life’ […]

This month HeartBeat Killarney has come up with a new slant on safe cooking.
A free copy of the cook book ‘101 Square Meals – Easy recipes for everyday life’ will be available to all those who come early to the May meeting on Tuesday night.
This book from Safefood which is supported by the HSE & MABS will come to life on the night as chefs from The International Hotel Killarney have very kindly volunteered to cook some of the recipes in the book for a tasting session during the meeting.
Nutritionist Paula Duggan will be on hand to discuss the nutritional benefits of each recipe prepared for tasting. She can also advise on any tweaks required to meet individual tastes and needs.
There will be four main recipes available to taste during the course of the evening; Meat Loaf, Baked Stuffed Fish, Chicken Fingers and Spanish Tortillas. There is a fifth recipe for tasting on the night but all that Chairperson Billy O’Sullivan will say about it is “It will be available at the end of the night with a cup of tea and we hope it will send everyone home with a smile on their face.”
This is a night that the HeartBeat group has worked long and hard to make happen.
“It came together because of the amazing generosity of Tracy Coyne, Catriona White and the wonderful Kitchen Team at the International.” said Billy. In these times when the price of foods has risen dramatically it is still possible to eat healthily with the guidance from this book. There are lots of tips also on food storage, freezing food, kitchen hygiene and food allergens.
HeartBeat meetings are FREE and all are welcome to come along on Tuesday May 30th at 8pm at the Parish Centre beside The Church of the Resurrection Park Road V93 WN32.
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