The Next Big Crash - Are You Prepared?

[corydorus]

PE is a ratio. Price can fall faster or slower than earning during crisis. Is a reference point but i would dig deeper into earning of STI to be safe.

[kevinvest8]

There are of course more then one way. The simplest is to look at the STI ETF's historical price relative to STI historical index.

Do you mean the Technical Analysis way? I.e. support resistance level?

[kevinvest8]

IMO, the best indicator would be STI's PE ratio.
Historically, STI PE is ~15X.

Base on Bloomberg, ST Index 3013.14; it's PE ratio is 12.86

We know stocks can be valued and buy when it's cheap. However, how do we apply the value principles to buying index, I.e. buy when it's cheap?

What triggers my this thought was the recent dip of STI to below 3000. This level is a psychological level to many, however does it mean dip below 3000 is cheap? How cheap is cheap for such an index?

Any comment/idea?

Thanks Ray for pointing this out, am not aware of this
Learnt something!

[Ray168]

Download Bloomberg apps to your smart phone. You can access the Market equity Indices realtime.

IMO, the best indicator would be STI's PE ratio.
Historically, STI PE is ~15X.

Base on Bloomberg, ST Index 3013.14; it's PE ratio is 12.86

We know stocks can be valued and buy when it's cheap. However, how do we apply the value principles to buying index, I.e. buy when it's cheap?

What triggers my this thought was the recent dip of STI to below 3000. This level is a psychological level to many, however does it mean dip below 3000 is cheap? How cheap is cheap for such an index?

Any comment/idea?

Thanks Ray for pointing this out, am not aware of this
Learnt something!

[kevinvest8]

Download Bloomberg apps to your smart phone. You can access the Market equity Indices realtime.

Thanks Ray for pointing out again about Bloomberg app. Didn't see the PE ratio on Bloomberg website (strange...) but Bloomberg app does indicate

[arriyana]

The ratios are not found on Bloomberg website but you can find it on their BusinessWeek Website.

[Temperament]

There are of course more then one way. The simplest is to look at the STI ETF's historical price relative to STI historical index.

Do you mean the Technical Analysis way? I.e. support resistance level?

If you buy STI ETF it is usually for very long-term investing. So you buy whenever the STI INDEX dip low enough base on Market Sentiment(aka Bear/Bull market sentiment).
And what is low enough is for individual to decide.
You are not trying to find 3 baggers individual stocks or more then 3.
i am for if it can be make simple, then make it simple.

i am thinking of buying STI ETF for the first time for preservation of capital more then increasing my capital as fast as possible by buying individual stock. But i will still buy some individual stocks for growth of capital to at least beat inflation if possible.
Old man can not take too much risk because no more human capital.

[tikam buddy]

There are of course more then one way. The simplest is to look at the STI ETF's historical price relative to STI historical index.

Do you mean the Technical Analysis way? I.e. support resistance level?

If you buy STI ETF it is usually for very long-term investing. So you buy whenever the STI INDEX dip low enough base on Market Sentiment(aka Bear/Bull market sentiment).
And what is low enough is for individual to decide.
You are not trying to find 3 baggers individual stocks or more then 3.
i am for if it can be make simple, then make it simple.

i am thinking of buying STI ETF for the first time for preservation of capital more then increasing my capital as fast as possible by buying individual stock. But i will still buy some individual stocks for growth of capital to at least beat inflation if possible.
Old man can not take too much risk because no more human capital.

Well, in a long term capital markets losing streak I reckon that gold could perhaps fall less than the other riskier assets, or store value for longer.

What else could act as good stores of value assuming we do not go down the slippery path of using cheem words like "currency debasement" and other sorts of unthinkable meltdowns/black swans? Property, I should guess. And other tangible stuff that you can keep and use (like blankets).

Of course, no one in a modern, interconnected world necessarily needs to (still) believe in these kind of wild/old/historic ideas but there's always the possibility things could go wrong occasionally or drastically. Can I say without substantiating my claim that systems are only as good and useful as they've been well managed, and then for even perhaps money also.

Thanks - for hearing - I do not intend to make these thoughts anything more (or less) than they should be, just my thoughts.

[Layman A]

Well, in a long term capital markets losing streak I reckon that gold could perhaps fall less than the other riskier assets, or store value for longer.

Does GOLD generate REVENUE like businesses do ?

Does GOLD give out DIVIDENT to the investor ?

Why Greatest Investor of all time Warren Buffet don't invest in GOLD ?

If the asset under play cannot generate any revenue by itself, it is nothing more than a zero sum game, right ?

[Temperament]

Actually why Gold like Diamond has monetary value? And Gold is something like buying life insurance that you hope you may never need to use it one day.