Straits Times Index ETF Performance In 2017
Check out the performance of our Straits Times Index ETF since the economical recovery from the 2008 sub-prime crisis. Current Straits Times Index ETF is priced at $3.26 dated 28 April 2017. This current level is a whopping 104% increase from the rock bottom level of STI 1600 back in April 2009.
If you take a closer look at the below Nikko AM STI ETF chart, the current price earning ratio of this Straits Times Index ETF equivalent is calculated at 14.51. This PE ratio is considered not to be undervalued anymore. Typically, I will only be more keen to invest in those with a PE ratio near or less than 10 with exceptions of certain industries. You can also see that the sales growth and cash flow growth of Nikko AM STI ETF are both in the negative level.
My Straits Times Index ETF Outlook in 2017
If you have adopted a disciplined approach in investing Straits Times Index ETF, you may continue to do so. The long term growth perspective of STI ETF is still looking good based on historical track records.
If you are looking for capital growth and net dividend yield perspective, perhaps you can hold on to your current Straits Times Index ETF position in 2017. It may be good to wait for the macro-economic and the political landscape involving countries like US-China, China-ASEAN and North South Korea region be more clearer. One may do his or her due diligence to invest in dividend stocks with higher dividend yields or to keep more cash position in his/her investment portfolio.
Though STI ETF may still be possible to have upsides, it may face more pressure to break its peak level at 3580. Its downward risk may be potentially be much higher if there is any major negative news coming to us e.g. a weaker US-China relationship or a potential war outbreak in North Korean region.
It may be good to stay patient in the next few months.