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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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Killarney for Palestine film screening

Killarney for Palestine recently held a sold-out screening of the Oscar-winning documentary ‘No Other Land’ at the West End School of Arts, raising €2,100 for Camp Breakerz. The event, which […]

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Killarney for Palestine recently held a sold-out screening of the Oscar-winning documentary ‘No Other Land’ at the West End School of Arts, raising €2,100 for Camp Breakerz.

The event, which took place on July 3, included two screenings, both of which were fully booked. Guests enjoyed cheese and wine before the shows.
‘No Other Land’ depicts the ongoing destruction in Masafer Yatta, a cluster of villages in the Southern West Bank, and shows the experiences of Palestinians under Israeli occupation. The film won in the Best Documentary category at this year’s Academy Awards.
The screenings were organised in association with the West End School of Arts.
All proceeds from the €25 tickets benefited Camp Breakerz Crew, a children’s charity based in Gaza that provides creative outlets through dance and is involved in food distribution programs in Nuseirat Camp and Deir-Al-Balah due to food shortages.
Sally MacMonagle, who recently spent time in Aida Refugee Camp in Bethlehem, also spoke at one of the screenings.

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Bid to host European Presidency summit meetings gathers pace

Fianna Fáil Spokesperson on Tourism, Michael Cahill TD, has highlighted Killarney’s suitability to host summit meetings of international Government Ministers during Ireland’s six-month European Presidency tenure in 2026. Deputy Cahill […]

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Fianna Fáil Spokesperson on Tourism, Michael Cahill TD, has highlighted Killarney’s suitability to host summit meetings of international Government Ministers during Ireland’s six-month European Presidency tenure in 2026.

Deputy Cahill believes Kerry’s available accommodation, food, and conference facilities are “second to none,” with Killarney as the central location.
“Visitors from every corner of the earth have been coming to Kerry for centuries now, to experience its beauty and serenity and have returned on many occasions because of the fabulous time they have enjoyed during their stay here,” said Deputy Cahill. “Where else would you want to bring the senior Government Ministers of all of our EU counterpart states, to experience Ireland, its customs and heritage?”
The Rossbeigh TD outlined various attractions available for visitors during downtime: “During their downtime, they can visit the Blaskets and Slea Head, Sceilg Mhichíl and the Ring of Kerry, Killarney’s Lakes, Gap of Dunloe, National Park and Sliabh Luachra, all of our glorious beaches from Ballybunion to Rossbeigh, Kells to Ventry, Whitestrand to Inch, Ballinskelligs to Cromane, Waterville to Derrynane.” He also cited Kerry’s golf courses, Listowel Writers Week, the Rose of Tralee, and Puck Fair as potential experiences.
Deputy Cahill confirmed he has raised this matter with An Taoiseach, Micheál Martin; An Tánaiste and Minister for Foreign Affairs, Simon Harris; and Minister of State for European Affairs, Thomas Byrne.
“If Killarney’s bid is successful in bringing the Heads of State to our county for meetings, conferences and functions, it will be a massive boost to the local economy in Killarney and also throughout the county,” added Cahill.”Iwill continue to push in the coming months for Killarney and Kerry to be included as bases for the rounds of meetings that are to take place from July 1 to December 312026.”

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