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How much is too much?

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Last week, banks, airlines, and other economically sensitive sectors felt the brunt of rising COVID cases across Europe. Major tech names and strong retail earnings did enough to counteract the negative pandemic sentiment with the S&P 500 and the NASDAQ finishing the week up 0.4% and 1.3%, respectively.

This week, sentiment looks to be against the stock market as it remains under pressure from a bond market that is looking increasingly jittery as the FED starts to wind down its asset purchases.

Sentiment Shift

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'Travel, good - stay at home, bad' has been the default position for markets over recent months. The likes of Marriot International and Airbnb have been rewarded while stay-at-home names such as Peloton and Zoom have cratered. Peloton has fallen over 70% from its pandemic highs, while Zoom has already slipped another 20% this week alone as investors reacted to a further slowdown in revenue growth. However, with COVID cases now rising again and lockdown measures being put in place across Europe, our heightened need for these stay-at-home names may not be over. Don't write these pandemic darlings off just yet. While momentum is likely to remain negative over the short term, the new lower price point will make for a more compelling investment.

How much is too much?

Nvidia: +161% YTD

Last week, Nvidia continued its phenomenal run as the tech giant reported a 50% jump in Q3 sales.

Nvidia is now the seventh-largest company in America and could soon become just the sixth company to reach a Trillion-dollar Market Cap.

While Nvidia's valuation multiplies are astronomically high, fixating on trailing earnings multiples has not been a rewarding investment strategy over recent years.

"The best performing stocks in the current era have never given you an opportunity to own them at parity with the market's multiple or below. And why would they have? Shouldn't the highest quality, fastest growing, best positioned companies have stocks that sell at a premium to the stocks of lesser firms?" - Josh Brown

While much of the future growth is already priced in, and 'quality at any price' is a potential pitfall, there is no denying that Nvidia is perfectly positioned to maintain its market-leading position well into the future.

Almost every company in the world will need to incorporate a digital and virtual arm in years to come. It's not just the tech giants that will drive future order flow.

Nike, for example, just announced last week that it is entering the metaverse via the launch of a virtual world known as 'Nikeland' on Roblox. Nike will be building an online store for Roblox users to try on virtual apparel, and it will have an arena for playing games mimicking the likes of the Super Bowl and the World Cup. Nike is not alone in this digital push as more and more companies look for ways to appeal to a younger audience.

As we move closer to a virtual world and the mythical metaverse becomes a reality, Nvidia's hefty valuation may become a little easier to comprehend.

Learn how to invest today, go to theislandinvestor.com.

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Final delivery as DJ retires

By Michelle Crean There’s hardly a Killarney home he hasn’t been to – but now DJ O’Driscoll has stood down from his duties. Friday night marked delivery driver DJ’s retirement […]

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By Michelle Crean

There’s hardly a Killarney home he hasn’t been to – but now DJ O’Driscoll has stood down from his duties.

Friday night marked delivery driver DJ’s retirement from the Killarney branch of Corcoran’s Furniture & Carpets, a position he has held for the last 15 years.

On Friday night, colleagues from all three Corcoran’s Furniture & Carpets stores gathered in the Killarney Height’s Hotel. DJ was also joined by his daughter and her partner for the special night.

“After almost 15 years of steadfast work with Corcoran’s, DJ has been a constant pillar of support for his colleagues and has helped the company go from strength to strength,” owner Kieran Corcoran said.

“Corcoran’s would like to wish DJ the very best of luck for the future and hoping that he enjoys his retirement. Many thanks to Killarney Height’s Hotel for hosting the staff night on Friday. A great night was had by all!”

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Rowers pull together for Order of Malta

Members of Flesk Valley Rowing Club had a strenuous but successful morning on Sunday when they collectively rowed the distance from Malin Head to Mizen Head. And it was all […]

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Members of Flesk Valley Rowing Club had a strenuous but successful morning on Sunday when they collectively rowed the distance from Malin Head to Mizen Head.

And it was all done indoors on rowing machines in support of the Killarney Order of Malta.

Just before 11am the Valley armada ‘left shore’, and approximately 40 members aged from 12 to 50ish set to their task with enthusiasm. By midday someone reckoned that Barack Obama’s Plaza had been reached but unfortunately there was no stop for tea, just a splash of holy water, a mouthful of Lucozade and a few jelly babies for the lucky ones!

As the kilometres clicked slowly by the temperature started to rise and the cry went up from the gasping veterans to open all the doors!

No such problems for the junior relay crews who had a fantastic morning rowing, laughing, and racing each other all the way to the finish.

The junior members who took on the half-marathon distance individually were amazing throughout and got stronger as the finish line came into view.

“We’re delighted with how the morning went,” Tadhg Kelly from Flesk Valley said.

“There was a great atmosphere in the venue, and we are grateful to all the parents and Flesk Valley supporters who came along to encourage our young and not-so-young rowers. It was great too to see the members of the Order of Malta in attendance to offer their support, and the club would like to thank everyone who donated on the day.”

Tadhg also expressed his thanks to the underage coaches and committee members for looking after everyone during the event. He especially wanted to mention everyone at Celtic Steps and the Killarney Racecourse for facilitating the club and Workmens Rowing Club and Glenflesk GAA for the use of their equipment.

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