The Same Question Whenever STI Inches Upwards

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From SPDR Straits Times Index ETF official website, distribution yield has now dropped to 3.04%. Price/Earnings is a little higher at 12.56, and Price/Book Ratio is 1.23 🙂

As the STI slowly inches upwards, the same old question pops up. Is it too expensive to buy now? I always refer them back to this post (see bottom half).

What we know from history :
– The Straits Times Index had carried a valuation that was substantially lower than its historical long-term average.
– The index had tended to produce some solid returns in the past when it had carried similar valuations.

Still interested to read more? See this Business Times article. As for myself, life goes on as per normal. Nothing has changed 😉 If the STI goes on a roller coaster ride downwards, then once again I can pick up more on the cheap.

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Comments

  1. Dean says

    Doesn’t really matter with dollar averaging. Past records isn’t an indicator of future performance. If you speculate, you won’t benefit from the ETF’s potential. Just buy when you’ve got the money to do so.

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