News
Price and value don’t always move in tandem

By Michael O’Connor
In 2021, the S&P 500 hit new record highs in nearly one-third of all trading days and saw losses capped at 5%.
In a year of perpetual uncertainty, we saw one of the most robust and stable market performances in the last 25 years.
"The market can remain irrational longer than you can remain solvent" – John Maynard Keynes
Last year brought us the now infamous GameStop and AMC Short Squeezes, countless meme stock rallies and a 49,000,000% return for the meme coin Shibu Inu.
At this point, I think it’s blatantly apparent to everyone that price and value don’t always move in tandem.
In finance, we often expect the world to behave rationally. We carefully look to quantify the probability of each individual outcome, but not everything is measurable. We naively assume logic will prevail and underestimate the persistent irrationality of man.
As, investor Jim Grant reminds us:
"To suppose that the value of a common stock is determined purely by a corporation’s earnings discounted by the relevant interest rates and adjusted for the marginal tax rate is to forget that people have burned witches, gone to war on a whim, risen to the defense of Joseph Stalin and believed Orson Welles when he told them over the radio that the Martians had landed."
History is a perpetual stream of mistaken opinions and unpredictable outcomes. If you’ve relied on data and logic alone to make sense of the economy, you’ve been confused for one hundred years straight.
Instead of presuming everything is purely logical, it is important to realise that there are two sides to every investment: the numbers and the story.
While not always the case, in today’s momentum-driven market, ‘the story’ has consistently been more potent than the numbers. We have seen growth stocks soar off the back of compelling narratives about future possibilities with little numbers to back them up. SPAC’s, high growth stocks and altcoins have rocketed ‘to the moon’ all hitched to a promise of what could be.
This may be frustrating for many, but these market forces need to be acknowledged and understood. Blindly assuming that logic will instantaneously prevail is a sure way to underestimate the inherent risks of the market.
Crazy things happen in markets all the time. Don’t expect that to stop any time soon.
Outlook for 2022
In short, I view this to be the mid-cycle of the recovery. The growth rates seen early in the cycle will slow, volatility will increase, economic and earnings figures will be suppressed by higher inflation and less accommodative central bank policies. However, there are still opportunities for risk assets in the coming year, albeit with more modest expectations for returns.
I continue to favour US over international stocks. Large-cap and high-quality stocks look set to lead the way as markets will likely favour a tilt towards value stocks.
Fixed income remains an asymmetric trade with little upside, while alternatives will continue to become less ‘alternative’ as investors seek diversification in a rising interest rate market.
Risks abound, but opportunities will persist.
For my full, in depth 2022 outlook, go to www.theislandinvestor.com.
News
Matt Britton Flooring Now Open in Cork
Matt Britton a thriving, local, sustainable, family-run business that has evolved into the ultimate destination for Ireland’s finest hardwood flooring, luxury carpets and bespoke rugs is now open in Cork. […]

Matt Britton a thriving, local, sustainable, family-run business that has evolved into the ultimate destination for Ireland’s finest hardwood flooring, luxury carpets and bespoke rugs is now open in Cork.
Established in 1997 by brothers Matt and Craig, both fitters by trade, Matt Britton has become a popular household name throughout Ireland, a favourite among Ireland’s top interior designers and has been featured in an array of celebrities’ homes, including Peter O’Mahony, Johnny Sexton, Conor Murray, Pippa O’Connor, Vogue Williams, Rosie Connolly, and Suzanne Jackson, among others.
Recent expansion plans included the opening of their fifth showroom, Matt Britton Cork, unveiled by Ireland, Munster and Lions rugby legend Peter O’Mahony.
“We are delighted to have launched our first Munster store as part of our expansion plans across Ireland. We have been overwhelmed with positive feedback from our customers who have previously travelled from Munster to visit us in Dublin and Wicklow and this has encouraged us to open a store closer to home for them. Moreover, we are pleased that the opening of this showroom has allowed us to create 10 new jobs in the local area,” said Managing Director Matt Britton .
Their showrooms are designed to offer customers a luxurious experience and showcase their extraordinary collection of hardwood flooring, opulent carpets, and bespoke rugs tailored to clients’ unique preferences.
News
Quest Killarney named Ireland’s best fitness and wellness event
Quest Adventure Series organised by Kerry based Elite Event Management came out winners at the Gym+Coffee Make Life Richer Awards. Quest won Best Large Fitness and Wellness Event, beating other […]

Quest Adventure Series organised by Kerry based Elite Event Management came out winners at the Gym+Coffee Make Life Richer Awards.
Quest won Best Large Fitness and Wellness Event, beating other well-known names in the fitness and event industry.
Irish gym clothing company Gym+Coffee established the Make Life Richer Awards as community-based awards that celebrate those who ‘Make Life Richer” to include people who have the same passion as they do and facilitate events and meet-ups that bring people together.
“The team at Quest are super-proud of this award and the achievement and would like to thank everyone who voted for them, and enjoys being part of the Quest community.,” said Elite Event Management’s Rebecca Kemp
Entries for Quest Killarney October 7 are now open at www.questadventureseries.com