Investors that had parked mostly in cash over these few years could only watch in envy as the market climbed higher and higher. Even some of these investors have started to lose their patients and instead follow the crowd by jumping on board too, but do keep in mind that by paying 19 times earnings, not only does one not have any margin of safety, one is greatly at risk of capital loss!
"Rule No.1: Never lose money. Rule No.2: Never forget rule No.1." - Warren Buffett
Back home the STI has only gained a disappointing 25% over the last 5 years. The STI seems "stuck" around the 3300 level and it might be years before it ever touches its previously high of 3800 again.
When taking a overview of the index components I like to use a sortable table, please feel free to use the link below
You can also look at mid cap stocks at this link
which is pretty useful, as I usually like to sort by PE and dividend yield
Currently O&G and Banks trade at lower valuations, Keppel/Semb Corp (PE ~11) OCBC/DBS/UOB (PE ~12), which I find still attractive for the long term.
Other Blue Chips that I really like but are trading at way too high valuations are
SIA Engineering (PE 19)
Comfort Delgro (PE 20)
ST Engineering (PE 20)
Genting (PE 21)
SGX (PE 24)
The market may continue roaring higher or a crash may come soon, you never know. But when one is tested by the market, do make sure you are holding high quality businesses and not penny stocks nor heavily geared cyclicals (commodities, property, shipping etc)
Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful. - Warren Buffett
Felix Leong aka pipi486