Current Stock index value for DOW, STI & S&P situation

Let take a look at the current PE ( price to Earning ratio) for Dow , STI and S&P.

 Dow is trading at a PE of 23.18x which is deemed as Overvalued .

 S&P is trading at a PE of 21.10x which is also deemed as Overvalued.

 STI is trading at a PE of 10.78x which is deemed as Undervalued.


 Why do I say that both Dow and S&P is overvalued at the current moment? This is because when the PE ratio of the index is way above 15, the market is deemed as overvalued.

 This is where the index is trading near its Peak level Historically, I think we use PE ratio of 15 as the median indicator of measuring the Peak market level. So , if the index is trading below PE 15x , it is being viewed as Undervalued.

 Therefore, STI is trading below or near to market bottom of PE 10.78x, in my opinion , it is undervalued.

 Currently, Dow is trading at 26000 level and S&P at about 2900 level. In my opinion, it is trading at a peak level / risky level and may go through and major correction in time to come.

 Let take a quick recap when the financial crisis actually happened. It happens a few weeks before the crisis erupted, whereby stock market were at a very high level.

 At that time,Dow was trading at 14000 level. S&P is at about 1500 level. And STI was trading at about 3800 level.

 Dow declined about 55% for a span of 17 months from about 12000 level to 6500 level. STI losses about 61% from 3800 level to about 1600 level. So, is good to know the current market index level whether is it overly priced or undervalued.

 When the major market correction happens , across the board, all counter may experience heavily selling down pressure. I think at that time , Capitaland was trading at $1.80 level,SGX was trading at about $4.80 level and DBS at $7.00 level .

 Both companies are still profitable and giving out dividend. Today Capitaland is trading at $3.26 level,SGX is at $7.28 level and DBS at $24.32 level. So when a major market correction happen, you will roughly know when price may likely correct to a certain expected price level.


 This is to get ourselves to prepare in advance for any crisis to happen.Do you have a proper plan to guide you and ensure you are not being emotionally affected when the crisis happen.

 Not a call to buy or sell.

 Just sharing what I feel about the current market situation.