Actually the selection for undervalued stocks has dwindled since the start of April when the STI increased dramatically. Now, most stocks of excellent companies have either been fully-valued or over-valued. One may still look at the bigger REITs like CapitaComm, A-REIT, CapitaMallTrust if one is alright with investing in REITs. Their share price is still below their Net Asset Value. However, REITs may carry risk of inability to finance their debts, so mainly big REITs players are safer to invest as they have good sponsors and some years of operating history and thus credibility to secure loans better. Major stocks like Singapore banks have seen their share price fully-valued or over-valued already, so may not be worthwhile to invest in them anymore. Other blue-chips counters (e.g. property counters, offshore marine counters and shipbuilding and transport counters) are also mostly fully-valued or over-valued already. 

Some investors may choose to invest in penny stocks now that the blue-chips have mostly risen in prices. However, one has to be very careful about the selection as some penny stocks are of speculative nature since they may not have strong established businesses to back their share prices even if the share price were to rise short-term.

Month of March was one of the best time to invest had one already invested when prices were at one of their historic lows. Now, it is still possible to nibble a little bit more at equities, but the rate of return is lesser than one who have invested during the March lows. If the STI were to rise further, then it may not be worthwhile to invest anymore since stock prices will become more over-valued. However, traders may still continue to do their trades according to short-term price movements. 

When STI was at 3600 pts, everybody says it's cheap, buy more, now at 2100+ says it's expensive, ha...ha...this is sentiment's play....

freeme      ( Date: 19-May-2009 18:43) Posted: expensive den as days goes by it get even more expensive.. iPunter      ( Date: 19-May-2009 18:30) Posted: How can you say it's expensive when you don't even know tomorrow???...

Buy carefully as some stocks have already been overvalued. Stay away from overvalued stocks. Buy into undervalued stocks of excellent companies. If this is the start of the bull market, then it is still not too late to enter. Just be selective to buy only stocks that are still undervalued. Avoid the popular ones as their share price may have been pushed too high already. Control one's greed and remain focused on investing with a high probability for a high rate of return in mind.

<Pay too high price for stocks and one really may pay a high price later on when the risk assumed is too much for just a small rate of return by investing at too high price.>

New home building hits record low

Government report shows surprising sharp drop in housing starts in April. Building permits also decline.