Quite surprise to see that Singapore Straits Times Index has the lowest PE in this comparison. Behind these numbers there are two important indications:
- Those blue chip companies listed in Singapore Stock Exchange still have very healthy earning. Note: Past EPS (Earning Per Share) is NOT the future EPS. It is important to see whether the future earning is sustainable for these companies.
- If the EPS is still sustainable, STI will probably rebound the fastest when the global economy and stock market recovers. This indicates the upside potential is huge compare to other stock market indices because STI is under value now.
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May I know how did you compute the above PE ratio or where can I find it on the bloomberg website?
Pls advise, thanks!
I got the number from Bloomberg. Don’t need to calculate.
You either get it from http://www.bloomberg.com/markets/ but you need to create a portfolio in order to see those PE ratio, or download Apps if you have iPhone.
Gd day Marubozu,
based on the STI PE ratio and potentially with huge upside once the economy rebound (dunno when of cse), what are the specific counters to ‘track on’ before ‘lock on’?
Good question and spot on questions. Frankly speaking, I am not studying in detail on those potential counters yet because “the blood still has not dried yet”. Need to wait for those uncle & aunties at the coffee shops to throw in the towel and said “Mai Sheng Liao” (Give Up) and it is almost time to switch to do a Fundamental Analysis of the counters. At this moment, I am still seeing people “Buy on Dip”… not the sign of totally giving up yet.
Actually you can do some quick screening by yourself with the following guides:
(1) Company with Price to Book Ratio < 1, another word is check whether the stock price is less than the NAV. (2) PE ratio comparison. It should be close to historical low. (3) When the econonomy recovers, normally which sector will move first? Just think of yourself, how and where are you going to spend $$ when the economy recovers, and which companies are making $$ from you? There are a lot more work to do before we can identify GOOD and CHEAP companies like analysing the company financial statement, understanding the business, calculate the Intrinsic Value, Identify the trend, etc. Hope the above helps and you can start to prepare your fishing rod now. Cheers! Marubozu
Thks Marubozu for your reply. Expecting incoming ‘bloodshed’ trading ^_^ Good luck to all of us.
Gd day Maruboza.
Any advice on which counters to trade if I just want to play with the indices like Dow jones, STI etc.
You can buy ETF for these indices.
DIA: Dow Jones Industrial
IWM: Russell 2000
ES3.SI: STI ETF
If you want to Short the indices, there are SHORT ETF available.
DOG: Short DOW30 (-1x)
SH: Short S&P500 (-1x)
PSQ: Short NASDAQ (-1x)
RWM: Short Russell 2000 (-1x)
If you want more excitement and bigger movement, you can buy Ultrashort ETF:
SDOW: Ultrashort DOW30(-3x)
DXD: Ultrashort DOW30 (-2x)
SDS: Ultrashort S&P500 (-2x)
SPXU: Ultrashort S&P500 (-3x)
QID: Ultrashort QQQ (-2x)
SQQQ: Ultrashort QQQ (-3x)
SJH: Ultrashort Russell 2000 (-2x)
You can find the rest of short ETF here.
Hope this information is helpful!