In the beginning of the year I mentioned about our local banks, how raising long term interest rates would benefit them and also how they were dirt cheap (PE 10-11 only). I personally bought into OCBC with about 20% of my funds and it contributed well to my overall portfolio. http://stockbrokerplayspoker.blogspot.sg/2014/02/riding-year-of-horse-are-banks-cheap.html Now we are in another bull phase as the STI gained 10% over the last 6 months Most of these gains came from our bank stocks which made up about 1/3 of the straits time index 6 months performance UOB +20% DBS +10% OCBC +6% Valuations Currently the index trades at slightly above 14 times earnings with a dividend yield of close to 2.5%, which is really getting close to its historical PE of 15 times. As such level I really think the market is fairly valued and any purchase at this level would have ......