Personal Opinion on Singapore Stock Market dtd 4 Aug 2014

Singapore mkt is based on the following primary driver:
1. Finance
2. Property
3. Offshore and Marine Services

Another sector of asset play is REITs. Published in the Business Times dtd 1 Aug 2014, the PE of ST Index stands at 14.3. This is considered fair value of the general mkt while the GDP(estimate) stand at 2-4%.

However the recent quarterly reporting, many companies shows a drop in Asset valuation. Also known as asset depreciation, there has been talks by the FED to increase interest rate but only to tapered off recently as the latest FED meeting shows that they will hold at ZERO interest rate.

To draw to a conclusion of the general mkt, we must be vigilant for any interest rate rise and also to practice prudent approach to our investing methodology such that the "Margin of Safety" must be increase from 20% to say 25 -40% from its book value. This is to take into consideration of market volatility and poor revenue from the coming months



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