News
Stocks: The story so far

By Michael O’Connor
Stocks have rebounded in recent weeks after a rocky start to the year amid concerns about the Federal Reserve tightening monetary policy to fight inflation and the war in Ukraine.
At the very start of the year, money in the system and record low interest rates meant stocks kept climbing higher despite the brewing of some severe problems.
Evidence of inflation to anyone who fed their families or filled their cars was now beginning to appear in official statistics. Russia had started amassing troops on the Ukrainian border. These factors led to an inevitable market reaction.
In the weeks that followed, market pandemonium ensued. The tech-heavy NASDAQ index fell sharply and entered into a bear market, down 20% from its highs, while the S&P 500 fell 12.5%.
Equity strength returned in March, and the recovery has been nearly as spectacular as the decline that preceded it. The major indices have recouped roughly two-thirds of the losses sustained over the previous two months in a single month.
Despite the late comeback, all three major averages posted their worst quarter since March 2020. The Dow and S&P 500 declined 4.6% and 4.9% respectively, and the Nasdaq dropped more than 9%.
But we are not out of the woods just yet. Volatility is likely to persist.
Hindsight is 2020
It’s easy to look back now once we have experienced a significant run upwards and state that the market was oversold, and this decline was a buying opportunity, but I think that missed the point. It undermines the uncertainty that exists when war is raging and the value of your assets are falling.
The reality is, it’s not how much the market has fallen that scares investors, it’s how much it could fall. Every time the market falls a little, we worry it will fall a lot. It’s human nature.
Me telling you last month that corrections are a regular part of the market function, and we have seen three corrections of 10% or more in just over three years, doesn’t strip out the gnawing thought that this time might be different.
Unfortunately, stock investing isn’t free. Volatility and uncertainty are the mandatory entry fees if you want access to the high returns on offer.
The least satisfying but most prudent action here? Focus on your long-term objectives and forget the rest. There will always be a seemingly justifiable reason to sell, but history has shown that markets prevail.
Outlook
Volatility is likely to remain, but some sectors will absorb the impact better than others. Exposure to real cash-flow generating assets such as rental real estate is crucial.
Equity exposure should be focused on companies that can pass on rising prices to consumers without much disruption to their net margins. Think consumer staples and utility companies. Even if prices rise, we still need groceries and electricity.
Lastly, oil and energy companies, especially those that do not hedge away their price exposure, seem to be the obvious trade of the day. In recent years, there has been a lot of talk about the stranded asset risk of oil and the environmental consequences that must be considered. Still, without an immediate substitute available, our dependence looks set to linger on over the medium-term.
News
Status Orange Weather Warning for Kerry
Met Éireann has issued two weather warnings for Kerry on Wednesday, 27 September, A Status Orange warning for heavy and intense rainfall is in place from 9am to 3pm while […]

Met Éireann has issued two weather warnings for Kerry on Wednesday, 27 September,
A Status Orange warning for heavy and intense rainfall is in place from 9am to 3pm while a Status Yellow warning for strong and gusty winds is in place from 7am on Wednesday to 12am on Thursday.
Possible impacts and disruptions include difficult travelling conditions, localised and coastal flooding, power outages, fallen trees and branches and poor visibility.
Kerry County Council is advising members of the public to prepare for severe weather on Wednesday and to ensure that items vulnerable to high winds are stored away. The Council is also advising motorists to travel with extreme caution on Wednesday and to expect surface water and spot flooding on all routes.
News
World Rally Champion Phil Mills’ Killarney visit
Former World co-driving champion Phil Mills will be one of the guests of honour at a special Killarney and District Motor Club event next month. The club is celebrating Prodrive’s […]

Former World co-driving champion Phil Mills will be one of the guests of honour at a special Killarney and District Motor Club event next month.
The club is celebrating Prodrive’s association with the Rally of the Lakes on October 14.
The legendary British motorsport preparation firm was responsible for building some of the most iconic associated with the local rally.
The celebration, which will raise funds for the Jack and Jill Foundation, will be hosted by the voice of Irish motorsport Alan ‘Plum’ Tyndall.
Welshman Mills, who won the 2003 World Rally Championship, alongside Petter Solberg has confirmed his attendance at the Killarney Racecourse-based event.
He is just one of many superstars attending the showcase.
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“Accompanying the stars will be a collection of iconic Prodrive machinery, ranging from the BMW E30 M3, all the way through to the Subaru Group A and World Rally Cars the 1990s and early 2000s,” said Killarney and District Motor Club vice chairman and organiser Mike Shea.
“All proceeds of this event will go directly to the Jack & Jill foundation helping provide support and special care to children across the country and is a once in a lifetime event.”
This event is in association with: Lyons of Limerick; C.Wharton Tool Hire Ltd; BG Motors Ltd; Castleisland Tyre Centre; Aherns Motor Group; Reen’s Rathmore Peugeot; KC Print and Moriarty’s Central Car Sales
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