Hi Guys,
I been inactive pretty long but the recent change of events has pulled me back in. Certainly, many of the SG stocks have dropped significantly. However, what I noticed is that quality US Companies are tremendously undervalued relative to Singapore Stocks.
By US High Quality, i mean companies like Johnson & Johnson, Coke, Microsoft etc. Franchise companies with little debt and strong cash flows.
By my metric, more than half the companies aka more than 15 in the DJIA index trade under 15x Owners Earning (similar to Free Cash Flow), an almost unheard of event. To give you an example, the last time this happened was in 2009. By almost all methods of vauation, high quality companies now trade at their 10 year lows, with PE ratios of 8 - 12.
The US certainly looks far more attractive now with the weak US dollar, coupled with the strong Sing $.
I been inactive pretty long but the recent change of events has pulled me back in. Certainly, many of the SG stocks have dropped significantly. However, what I noticed is that quality US Companies are tremendously undervalued relative to Singapore Stocks.
By US High Quality, i mean companies like Johnson & Johnson, Coke, Microsoft etc. Franchise companies with little debt and strong cash flows.
By my metric, more than half the companies aka more than 15 in the DJIA index trade under 15x Owners Earning (similar to Free Cash Flow), an almost unheard of event. To give you an example, the last time this happened was in 2009. By almost all methods of vauation, high quality companies now trade at their 10 year lows, with PE ratios of 8 - 12.
The US certainly looks far more attractive now with the weak US dollar, coupled with the strong Sing $.