STI close: 3167.43
PE10: 14.0

Brand new year! The STI ended 2013 lower but with a PE1o of 14.0, that’s hardly demanding. At the depths of the great recession in ’08/’09, PE10 reached a low of 11.2. At the frothy levels of ’07, it reached a high of 32.2. While markets in the USA are at all-time highs, that certainly isn’t true for the STI.

However, remember that the PE10 isn’t a good short term tool. My own research shows that this works best (so far) over a time horizon of at least 5 years (any longer doesn’t produce any discernible advantage). Once again, for background on this, see here.

How will the local market fare this year? Your guess is as good as mine! Stay tuned to find out.