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ashz asked 3 years ago

hi Victor 
it was mentioned that when pek of s&p500 is more than 25, we should reduce our portfolio already. 
Right now, s&p500 is at 25. Seems like we should just build a watchlist and a war chest? 

1 Answers
Victor Chng answered 3 years ago

Hi Ashz,
 
Sometime bull market will run a long time so if possible try not to time it. Focus on the market and stock valuation to make the decision. If the market is overvalued and my stock is overvalued, I will slowly trim it down but if the market is overvalued and the stock is still undervalued, I will probably hold it. In most cases, if i view the company is a good company with great management, I will probably hold it all the way unless mr market give me a no brainer price than I may trim some of the position.
 
I just checked the S&P500 from bloomberg it is 21.19x not 25x

Jeff replied 3 years ago

Hi Victor, quick peep to STI which now trading at PE ~10. Do you see good chance start investing in sgx or its ETF?

Victor Chng replied 3 years ago

Hi Jeff, at anytime of the market, there is always chance to invest just the effort spend is more or less. At the moment, despite the index showing 10x PE but the stocks that are non-index does not move much to give any value for us to look into it. To invest in ETF index, the best way is to invest when the market index drop more than 15% from their peak. By doing this way, you covered your downside risk already.