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Guaranteed losses

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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.

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Festive jumpers and a Kerry jersey brings fundraiser to €10k

By Michelle Crean Jumpers have helped to raise almost €10k so far – but now it’s a very special jersey which could drive the fundraising numbers up! A Kerry football […]

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By Michelle Crean

Jumpers have helped to raise almost €10k so far – but now it’s a very special jersey which could drive the fundraising numbers up!

A Kerry football jersey signed by the 2022 All-Ireland winning team is up for grabs via a fundraising link once a donation is made to the Presents for Palliative fundraiser.

On Friday eight local schools including Holy Cross Mercy, Killarney Community College, Presentation Monastery, Lissivigeen, St Brendan’s College, St Brigid’s, St Francis Special School, and St Oliver’s
swapped their uniforms for their most colourful festive gear with funds going to help the amazing services in the Palliative Care Unit/Kerry Hospice Foundation.

“The day took place across the schools involved last Friday (December 2) and looks like it has been a success,” teacher Elaine Moynihan from St Brendan’s College told the Killarney Advertiser.

“The donations from the schools are still being counted but students look to be on their way towards making their goal of €10k.”

The iDonate ‘Fundraising For Kerry Hospice Foundation’ has been very helpful in this regard, she added.

“Anyone who donates via the link and leaves their name will be in with a chance to win a Kerry jersey signed by the 2022 All-Ireland winning team which will be presented to them before Christmas by a couple of members of the team.

“This was organised by the students involved in the fundraiser as a way to say thanks, and give back, to the members of the community who have gotten involved in the event – the link is live until December 18 and the draw will be made the following day.”

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Killarney punter secures €50,000 in EuroMillions draw

A lucky Killarney punter got an early Christmas present when they scooped €50,000 in the EuroMillions ‘Ireland Only Raffle’. The winning ticket, sold in the Lidl supermarket on the Tralee road, was […]

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A lucky Killarney punter got an early Christmas present when they scooped €50,000 in the EuroMillions ‘Ireland Only Raffle’.

The winning ticket, sold in the Lidl supermarket on the Tralee road, was valid for Tuesday night’s special draw.

The Killarney winner was one of 10 who each secured the €50,000 windfall.

“The National Lottery can reveal that three players in Dublin, three players in Cork and one player in Kerry, Roscommon, Kildare and Wexford all scooped the special raffle prize which was the seventh of 12 draws in the National Lottery’s ’12 Draws of Christmas’ promotion,” said a National Lottery statement.

The eighth draw will take place tonight (December 9) where 10 more players are guaranteed to win the amazing prizes.

Meanwhile, a player in Belgium scooped the EuroMillions Jackpot prize worth an astonishing €142,897,164.

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