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The hottest stocks are quietly getting killed off

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By Michael O’Connor

Markets are constantly changing and adapting, but a timeless law is that money will always chase performance, leaving us a step behind.

Over the last six months, four stocks - Microsoft, Apple, Nvidia and Google - have generated almost 70% of the S&P 500's return.

Meanwhile, many of the retail investing favourites continue their precipitous decline.

In what has now been dubbed the Tarantino Market, the hottest stocks from last year are quietly getting killed in the basement while everything continues as normal in the front room.

Docusign, Square, and Twilio have all lost between 20% and 35% YTD
Teledoc, Zoom, Beyond Meat and Zillow have lost roughly 50% YTD
StoneCo, Pelaton and Lemonade are down between 65% and 80% YTD

The S&P 500 Index is up almost 25% this year, relentlessly hitting all-time highs in December while growth names crumble in the background.

A reminder that stock picking is hard, and nothing lasts forever.

Statistically impossible

For tech growth stocks that had produced record growth numbers in recent times, the endless upward trajectory was unsustainable, and those who assumed a perpetual state of hyper-growth are now beginning to sober up. It's a lesson learned.

It's easy to get drawn in by the enticing narrative that these mammoth growth rates create, but these growth rates will never persist; it's a statistical impossibility. 100% revenue growth is an impressive but manageable task if your total revenue is 100k. Doubling your revenue from $500 million to $1 billion is a much more arduous endeavour.

Don't get too attached to the hyper-growth story. The rate of growth is guaranteed to slow down over time, and much of this future growth is already baked into the price.

Ensure you have other areas of conviction that you can assign to the company. Every company can have a hyper-growth story at some time or another. You need to have enough conviction to stay the course as the narrative changes and companies encounter inevitable growing pains.

You will never expose yourself to the exponential returns these companies offer in the long run if your only metric is price. Focus on finding companies you believe in with strong moats, inspirational founders, and innovative IP - companies that correspond with your vision of the future. Focusing on understanding what you're invested in and why you are invested in it makes it a lot easier to ignore the guaranteed price fluctuations over time.

With that said, markets, companies and people change, so make sure to objectively assess your positions at regular intervals to ensure your original investment thesis still applies.

Momentum is a powerful force in today's market and making investments simply because a stock has gone up in price and you are looking to get in on the action can be a rewarding strategy in the short run.

Still, without understanding what you own and why you own it, you are in for a painstaking investment experience laced with perpetual uncertainty.

Make a plan

The recent losses across the popular retail investor names has highlighted the need to stay focused on the core principles of long-term investing.

· Don't get caught up on short-term moves. Focus on your long-term time horizon
· Make sure you have adequate diversification
· Be patient: There will be periods where markets fall over 10%, that is a guarantee
· Stay committed to the companies you believe in; conviction is everything
· Be an opportunist: Use market corrections to build out positions in your favourite stocks.

As always, you can find more investing information at theislandinvestor.com.

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Do facial treatments hurt?

It can be difficult to book your first facial, as you aren’t sure what your skin needs or what’s involved, but don’t worry, as that’s our job to make it […]

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It can be difficult to book your first facial, as you aren’t sure what your skin needs or what’s involved, but don’t worry, as that’s our job to make it an easy process.

One of the most asked questions I get asked is do facials hurt? The short answer is no, but I have to admit it depends on your skin type and what is required. Squeezing black heads isn’t the most comfortable moment during a facial, but we always have the skin well prepared, exfoliated and softened, and use steam to open the pores. Mostly a facial is super relaxing and comfortable.

Summer weather tends to bring with it oily skin and breakouts, but it’s often less acne prone in the winter. This doesn’t mean you shouldn’t be getting regular facials throughout the year however. The best way to see the benefits of a facial is to get them consistently. A good facial will have the products tailored to your skin type.

You have nothing to loose but excess oil and dead skin cells. I have a feeling men are more sensitive than women as they always ask about the pain involved first!

Give me a call to book in or if you’ve any other questions ring 064 6632966.

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Plan ahead for College Open Days

Niamh Dwyer is a Guidance Counsellor in Scoil Phobail Sliabh Luachra, Rathmore. For more careers information see www.mycareerplan.ie or follow @mycareerplan on Facebook, Instagram or Twitter.

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By Niamh Dwyer, Chairperson of the Kerry Branch of Guidance Counsellors
 

The College Open Day season for 2023 entrants starts in earnest in early October.

From then on, the Higher Education Institutes (HEIs) and Agricultural colleges will showcase what they have to offer to potential students. Further Education Colleges tend to host their open days from January onwards. Thankfully HEIs are back to hosting in-person open days but many are offering more specific information sessions on particular courses and departments virtually. College Open Days give students and parents a great chance to find out lots of interesting and detailed information about courses of interest and the many supports available, as well as giving the opportunity to get a feel for the college by availing of campus tours. You will find a complete list of the open days in the events sections of www.qualifax.ie and on www.careersportal.ie so take some time to make a list of the ones you want to attend.

Prepare and plan 

Do some basic research on the courses on offer. Check the entry requirements for each course of interest as you will need to meet these to be eligible to compete for a place on the course. Check out the modules and whether Erasmus or travel abroad options are available, as well as work placement. Don’t ignore a course or open day because you don’t expect to get enough points. You may do far better than you anticipate.
Have a good look at the college website – register for the open day in advance, download the schedule of talks and make note of the ones you want to attend. Make sure to download a map of the campus so you know exactly where to find the talks and presentations of interest. Jot down any questions you have as you will hopefully get a chance to talk to college staff and/or current students. Plan to arrive in plenty time as there are likely to be very large crowds attending. On the day, try to gather information about accommodation, clubs and societies and student supports. Many HEIs run talks for parents and on grants, HEAR (Higher Education Access Route) and DARE (Disability Access Route to Education) so check them out. Make sure to get contact details for any staff members which may be important later for follow-up questions.

Atmosphere

There is nothing like a College Open Day to give you a sense of what the campus feels like. Soak up the atmosphere and consider if the size of the campus is the best fit for you. Larger campuses can be intimidating for some students while exciting for others. Smaller campuses can feel more comfortable and manageable. You will know what feels right for you. Bear in mind that open days have a festival feel to them and regular college days are not always like that. This may be your only chance to visit the campus before you register there as a student so make the most of your day and enjoy it!

Niamh Dwyer is a Guidance Counsellor in Scoil Phobail Sliabh Luachra, Rathmore. For more careers information see www.mycareerplan.ie or follow @mycareerplan on Facebook, Instagram or Twitter.

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