I haven’t updated the PE10 on this blog in a while.

As of 1 Nov 2014, the PE10 for the STI stands at 14x which isn’t dirt cheap but it’s not a demanding figure either. But going back just 3 weeks or so, it seemed as if major markets around the world were going to move in lockstep downwards.

Privately, I was salivating because markets were tantalisingly near the cheapest decile in terms of historical PE10. Here, I must make the qualification that I didn’t enter the markets in a big way even though the PE10 valuations were the lowest since 2012.

I was greedy- I was waiting for it to hit the lowest decile which would have made the STI somewhere around 3130. The STI never got there. It closed at 3154 on 16th October and just took off from there. Having said that, the STI represents the big caps. The small-mid caps haven’t moved much yet and some value can be found there now.

Well, my saving grace is that despite the constant battle with fear, I’ve learnt that Time in the market is more important than Timing the market so my portfolios were heavily vested for the most part. Only Portfolio K remains underinvested.

 

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