The Singapore STI is currently at a high level. Should investors invest in Singapore stocks now? According to an expert, the Singapore stocks market is “cheap” trading at a P/E ratio of around 14, giving investors a dividend of 7% in general. The expert proceeded to reassure investors that rising interest rates should not worry investors as they only mean that the economy of the world is good.
When I heard what the expert said, I really thought that what he said was really a theoretical exercise of the entire Singapore Stocks markets. What I must remind investors is that when we invest, we will usually invest in selected stocks; each stock respond differently to the global market cycles, driven by the company’s fundamentals, corporate decisions and investors’ perception. Even if one is to buy into the STI ETF which tracks the Singapore Stocks markets, the dividends average to 3% ......