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Is the correction over?

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It's been a tough month for investors. After a blissful 18 months, the 'markets can only go up' narrative seems to be wearing thin.

Despite a late surge on the last day of the month, the S&P 500 wrapped up its worst month since March 2020, with the tech-heavy Nasdaq narrowly avoiding its worst-ever start to the year.

The Nasdaq is now very much in correction territory, down 12% in 2022, with the S&P 500 down 7.0%.

If you dig a little deeper, the true extent of the volatility becomes more apparent. One in three companies in the Russell 3000 Index (Index of the entire US public stock market) has fallen more than 40% from their 52-week highs. An ode to index investing and a stark reminder that stock picking is hard.

Death to Social Media

Shares in Facebook plummeted as much as 22% following a less than convincing earnings report that saw Meta record their first-ever fall in global daily active users (DAUs).

The daily loss of $230 billion was the largest one-day loss in the history of Wall Street and sent ripples through markets. It wasn't just Facebook suffering; social media contagion saw other players decimated, with Snap, Twitter and Pinterest recording significant losses.

Snap plunged by over 20% following Facebook's earnings call, but reported their first-ever profitable quarter later that evening to send its stock soaring by as much as 62% at one point! This crazy two-day price fluctuation should function as a cautionary tale for investors.

These short-term price movements are rarely logical, typically over-reactive to the extreme and impossible to decipher in real-time.

Don't Look

For most, last week's volatility should function as a reminder that you are not doing yourself any favours by watching the play-by-play if you're not a full-time trader.

Ultimately if you have a longer-term time horizon, you're adding undue stress and anxiety by over-analysing each tick higher or lower.

So here is your timely reminder to stop checking prices. Log out of your brokerage App. Remind yourself why you invested in the first place instead of fixating on the daily price movements.

Nothing New Here

Remember, stock market losses are a regular occurrence. Since 1950, the S&P 500 has had an average drawdown of 13.6% over a calendar year. And yet, markets have continued to grind higher over time.

The volatility you get from stocks is the prices you pay for the high returns they offer. It's not free.

Outlook

Predicted increases to the FED Funds rate have led to much of the recent sell-off. In my opinion, these rate hikes are priced into markets, and much of the correction has been completed.

With that said, volatility is here to stay with geopolitical tensions in Russia, inflation uncertainty and the tapering of economic stimulus at the forefront of investor sentiment.

It is unlikely to be as easy as it has been with valuations stretched in places, but it is hard to get overly negative with fundamental trends so solid.

Earnings remain strong, valuation metrics are contracting, GDP is at an all-time high and continues to grow, company margins are improving, and consumer demand is now above pre-pandemic levels.

The game isn't over. It all just gets a little harder from here.

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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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