STI started the new year at 3,402, which is 13.9 times 12-month forward price-to-earnings. This valuation puts the STI at 0.25 standard deviation above its historical 12-month PE.
In the first two trading da...
Even though the current interest rate upcycle started in December 2015, the current interest rate environment remains benign. As of January 2018, there have been five increases, and the market expects another three increases this year. The long end of the curve, measured by the 10-year US government bond rate, likewise, is still benign and below the 2014 peak, even after the increase observed this month.
The Straits Times Index (STI) was one of the best performers among ASEAN markets in 2017. Moving forward, Maybank Kim Eng (MBKE) expects STI to continue to rally into 2018 with an end-2018 index target of 3,670, which reflects an about an eight percent upside for the year. For investors who are seeking alpha above the STI returns, there are three investment themes that MBKE recommends.
Equities have been outperforming other asset classes in 2017. Given the strong run in performance of stocks in 2017, would stocks still be the go-to asset class in 2018? According to JP Morgan, the answer is a resounding yes!
If you are thinking of investing in 2018, then heads up. According to DBS, Singapore is one of its most recommended market to invest in 2018. DBS believes that the Singapore market has a strong mix of earnings growth, low valuation and good dividend yield among the ASEAN markets. Moreover, based on the MSCI Singapore Index valuation of 14 times price-to-earnings (PE), Singapore is one of the most attractive markets in the world, not just in ASEAN.
2018 will be the year where Singapore’s economy recovery will broaden from the manufacturing sector to the rest of the economy, according to DBS. DBS believes that this turn in tide for Singapore’s economy is both powerful and sustainable.
Oftentimes, amateur investors only focus on their upside and when is the best time to buy a stock. But you have to remember that buying a stock is only one part of the equation. Unless you plan to hold a stock for its dividends, knowing when to sell a stock is also just as important to making capital gains in the stock market.