News
Guaranteed losses
By Michael O’Connor from theislandinvestor.com
It's human nature to focus on the most recent news and react to our present environment.
Where we go wrong is our tendency to extrapolate this current environment out into the future, assuming it will last forever.
During the good times, we get caught up in the euphoria. We think things will last forever, and we find ways to rationalise even the most ludicrous narratives. Lest we forget, people were finding seemingly justifiable reasons to pay millions of dollars for pictures of cartoon rocks less than a year ago.
This tendency to extrapolate works both ways. It's easy to get caught up in the downward spiral of bad news and buy into the doomsday scenarios.
The imminent collapse of Fiat Currency, World War 3 and a Global Debt Crisis all become seemingly guaranteed outcomes when outlooks turn negative.
But nothing lasts forever, and the current environment we are in will not be the exception to the rule.
This too shall pass. While it may seem inevitable when you are stuck in the echo chamber of endless bad news, in reality, it is far less likely to lead to an apocalypse than the doomsday preacher would like you to believe.
So, where does that leave investors?
You're looking in the wrong direction.
No need to regurgitate the negative news. It's everywhere. This symphony of pessimism has led to considerable market stress, with stock and bond indexes down over 20% YTD.
But that is what has already happened. You get no special prize for regaling what is currently happening or what has happened in the past.
The stock market is a forward-looking machine, so you must align your focus accordingly. As markets fall, you should ask yourself, what does all this mean for the future? How will things look one, three, or five years down the road?
As prices fall, fear increases but so too does the future expected return. Present-day turmoil creates future opportunities. For those not of retirement age, 30% market declines should be met with open arms and viewed as buying opportunities.
Investing is still too risky
Banks are boasting 0% deposit rates while inflation hits double figures. The price of everything around you skyrockets while the absolute value of your money stays the same.
Times have changed. Your money isn't 'safe' in the bank, you are simply locking in guaranteed losses. You need to be proactive. Doing nothing with your money is no longer an option. If you want to maintain your current wealth, it needs to be tied to assets that generate positive returns over time.
This isn't about taking maximum risk of finding the optimal investment that will make you rich overnight. You simply need to realise that you are willingly losing your hard-earned money by doing nothing.
Recent market activity has created opportunities for even the most risk-averse investor. As a result of the rise in interest rates, there are risk free investments now offering between 4% and 6% annual. These are far from the most lucrative assets, but they are a significant improvement from the 0% you are getting from the bank without any increase in credit risk.
If the potential to lose money is the thing preventing you from investing in the stock market, please realise that you are already making guaranteed losses as the value of your money erodes in the bank. Cash is the worst-performing asset class in history.
Don't worry about making the perfect first step. Inaction is the real enemy here. Simply focus on finding an investment better than your current deposit account and work from there. It won't be hard to find.
Focus on improvement, not perfection.
For free weekly stock tips and direct access to my personal investment portfolio, go to www.theislandinvestor.com.
Interview conducted by Aodhagán Ó Súilleabháin, Cormac Flanagan, and Ryan Twomey.
Name: Kieran O’Leary – Entrepreneur and Killarney businessman.
Year of Graduation: 2005
Occupation: I would be the Jack of all trades and the master of none. I am involved in the hospitality industry. I have Corkery’s Bar, Revive Café, Ruckus Café and I’m a part of Integrity gym, so I do a lot of coaching. The passion by me would be probably in the fitness industry, because I played at a high enough sporting level and that’s come to an end now so I’m kind of concentrating on the coaching early mornings, hospitality day and evening and I have a young family as well so that’s obviously the biggest priority of all.
Could you describe a typical day for you?
I wake up at 5.30 and I am in the Gym for 6am. I work with clients till 8.30 – 9:00am. I then have school drop off, check the stock in the cafes and open Corkery’s. I kind of float around all day, kind of just helping where I can, and then evening time is probably the most hectic, at home, the kids might have football, well the young fella has football, he does a bit of Jiu-Jitsu, and dinner, stop, start, repeat the following day. I work hard, when you’re self-employed it can be difficult, but I try to get down time on Sundays or maybe Wednesdays.
What drew you to St Brendan’s as a school?
It was the sports that kind of drew me. The past pupils that I would have known from the sports clubs and would have seen their careers progress. It’s renowned, the history behind the Sem is unbelievable. I wasn’t really going anywhere else. The history behind it, the stories that come out of it, the people that have progressed and done so well in life. I don’t mean success by wealth, they seem to be happy in their professional life, happy with their life decisions and I suppose the Sem has a huge part playing in that.
Would you have kept in contact with any teachers?
Even now you see older teachers that may be retired or are even still there, they still have a bit of time for you, and they’ll stand in the street and say how are you getting on? We live in a small town, where everyone knows kind of everyone’s business to such an extent, so I think just the camaraderie, friendships and like the great times we had, I’ll always remember that.
Would you have kept in contact with your classmates?
The friends I made. They are lifelong friends. We were lucky enough to be a part of a good few sporting teams, and we would have progressed through the Kerry GAA side of things, and then there’s a lot of them working around here, a few of them abroad, but you’d have your core five or six fellas that you still stay in contact with. Outside of that if you saw past students of the school around the town, of course you’d stop and talk to them.
Were there any specific academic programmes or teaching methods at the school that helped you succeed in what you’re in today?
I didn’t apply myself the way I’d like to which is kind of a regret, but I did Business Studies with Joanna Ryan, she was a very good teacher. I went on to do business which I didn’t complete in IT Tralee, and funnily enough, then I got involved in the business side of things, so it’s funny how things work out. Just because you mightn’t do the best Leaving Cert doesn’t mean that you’re a failure, there’s always an opportunity around the corner and if you’re willing to apply yourself in any shape, way or form then you’ll succeed. It’s all about the mindset, discipline and as I said, my mindset was GAA, maybe even soccer related when I was that age, I could see nothing else, I was a bit blinkered, but as you broaden your horizons as you get a bit older, more mature you realise there’s different ways to go about your goals.
Can you share an example of how a teacher or staff member made a meaningful impact on your growth.
I’d say Seamus Grealy to be honest, because he is an excellent teacher. He was a soccer coach and he would have seen the potential in me and even though the application mightn’t have been there at times. He still persisted and gave me that chance to try and achieve the best possible grade I could within the Leaving Cert year. I would have done honours English even though my mother and father were saying “What are you doing?, you know, because I hadn’t the work done or whatever. The fact that he gave me that kind of TLC. I needed, that kind of arm around the shoulder, to say, listen there’s more in you, try your best, and as you know he can be firm as well, I just found him pretty good to deal with.
St Brendan’s College: Voices from the Halls
Interview conducted by Aodhagán Ó Súilleabháin, Cormac Flanagan, and Ryan Twomey. Name: Kieran O’Leary – Entrepreneur and Killarney businessman.Year of...
Official launch of the Assess Ireland Rally of the Lakes set for April 11
The official launch of the 2026 Assess Ireland Rally of the Lakes will take place at Gleneagle Hotel on Saturday,...
Aghadoe native spearheads Darkness Into Light in London
In the absence of a local flagship event this year, one Aghadoe woman is ensuring the Killarney flag flies high...
Killarney co-drivers lead the charge for Circuit of Ireland
The NAPA Auto Parts Irish Tarmac Rally Championship heads to Dungannon this Easter weekend for the Circuit of Ireland, with...
SUPPORTING LOCAL EDUCATION
SUPPORTING LOCAL EDUCATION Karen Buckley, representing the Loughguittane National School Parents Council, accepts the proceeds of the Fossa Two Mile...
