Singapore Strategy - The world wakes up to a valuation scare

Singapore's economic fundamentals are sound, job creation is strong and corporate earnings have been decent. Everything is fine. The only exception is that the world has suddenly woken up to the recognition that the Shanghai A-share has doubled in seven months and is now trading at 30x forward P/Es. We think that the A-share could get worse before it steadies itself. We expect the flow through negative sentiment to knock the STI back for a while. Essentially, we are not concerned on fundamentals but see this as a long-needed valuation temperature check. Reviewing Singapore stocks, we are cautious on highly priced China stocks and Singapore property stocks. As shown in recent day's market reactions, priced to perfection also means large downside risks should the world wake up one day feeling less than perfect.

Singaporegal...

As a pure technician (chart-reading), I won't be one who likes to 'own' any company... :).   

When I enter a stock, I am ready to get out at a moment's notice, ie when the technicals show I am so wrong about it. And I am wrong so many times!.

To me, any stock is game as long as the charts show good promise of it's probabilty of rising. But as soon as the chart proves that I am wrong, I get out very quickly.

So you see, when I am wrong, I  don't  hold  and hope for the price to rise...  Hope you won't disagree with me about this, since I can see you started with TA...  :) 

"... [5) A quote from Oscar Wilde - "People know the price of everything, but the value of nothing". I believe this statement applies to people who study charts and choose to ignore that a share actually means part-ownership of a company.] "                               

-by musicwhiz5 in a previous post



I fully agree with that quote by Oscar Wilde (by the way I know absolutely nothing about Oscar Wilde)... but I don't know what point he's making.

Being a proud so-called 'part-owner' of a company does give one a sense of belonging, pride and comfort(?).

I am sure everyone invests in the stock market for one sole reason and that is, quite obviously, with the hope that the price will be higher than our purchase price. So assuming this is the sole reason, which in my opinion, must be, then other reasons must be secondary or even unimportant. The latter includes "love" for a company's solid value fundamentals, the greatness of it's existence, etc.

So, if one is really, really just concerned about it's price performance, then price, not 'value', perceived or otherwise, becomes the sole reason for one's involvement with any stock. So how can one ignore the price? 

Even 'value investors' will not hesitate to admit that a stock has not value if it's price is much, much lower than the price one has paid. 

This of course applies only to stocks ( as opposed to things which have true sentimental value, for example). 

"... [5) A quote from Oscar Wilde - "People know the price of everything, but the value of nothing". I believe this statement applies to people who study charts and choose to ignore that a share actually means part-ownership of a company.] "                               

-by musicwhiz5 in a previous post



I fully agree with that quote by Oscar Wilde (by the way I know absolutely noting Oscar Wilde)... but I don't know what point he's making.

Being a proud so-called 'part-owner' of a company does give one a sense of belonging, pride and comfort(?).

I am sure everyone invests in the stock market for one sole reason and that is, quite obviously, with the hope that the price will be higher than our purchase price. So assuming this is the sole reason, which in my opinion, must be, then other reasons must be secondary or even unimportant. The latter includes "love" for a company's solid value fundamentals, the greatness of it's existence, etc.

So, if one is really, really just concerned about it's price performance, then price, not 'value', perceived or otherwise, becomes the sole reason for one's involvement with any stock. So how can one ignore to price? 

Even 'value investors' will not hesitate to admit that a stock has not value if it's price is much, much lower than the price one has paid.

This of course applies only to stocks ( as opposed to things which have sentimental value, for example).