Can you advise on how do you determine the entry price when purchasing the S&P 500 ETF? Do we take the current PE ratio and compare with the average PE ratio for the past 5,10 years? Is there any other metrics that we should be taking into consideration?
May I know are you buying and hold the S&P 500 ETF for long term investment? I asking you this because the strategy for S&P 500 is different from individual stocks.
There are many studies had shown that dollar cost averaging (DCA) will beat timing the market over the long run even if you are the best timer in the world. So if you are investing S&P 500 over a long term, my suggestion is to do DCA.
If you want to trade S&P 500 ETF then you can purchase it every time it hit below its 10 years average PE.
Sorry to borrow this thread. Hi Victor, I do not wish to buy the S&P 500 ETF, but I wish to have a gauge if the S&P 500 is at a fair value so to pick up the US stocks. My question is, in this case, still use the 10Y average? or use the average from 1871 to 2021?
Because as in the course notes, more than PE 25: bubble, PE 16 to 25: overvalued, PE 10 to 15: fair value, less than PE 10: undervalued.
Hi Sun Down,
You can use the 10Y average.
The course note on the valuation is a general rule of thumb but the PE can vary based on different situation which I had mentioned during the live webinar.
Hi Victor, noted with thanks. Is there any similar link like the “multpl.com” for the HKEX?
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