I just came across an article titled " There is a way to time the market" and  avoid the 10 worst plunges in the last 40 years in the Straits Times Index.Like to share with you guys.

In summary:The peak PE of 33.5 times was registered on Sept 1, 1987. In January 2000, it was 32.7 times. On Oct 1, 2007, it was 30 times.If you used 25 times and above as an indication of market overvaluation – so you get out of the market, and you get in only at 15 times and below, you would have avoided the October 1987 Black Monday crash, the Asian financial crisis, the dot.com bubble and the global financial crisis.

Now the question: Where is the 10-year average PE now? Well, it’s at 14.8 times – not in extreme undervaluation territory but just about, at our arbitrarily set buy level. But bear in mind that we are in an extraordinarily low-interest rate environment. Based purely on the PE, assuming there are no structural changes in the world compared to the past 35 years, there still appears to be a case for being invested.

With this analysis as a guidance,forummer can more or less assured of where we are heading into instead of having to live in constant fear of Sifu Iso predication of an imminent collapse.It  is with regret that  Sifu is unable to share with us his findings only to  quote from his mystical crystal ball. 

Oprah, still can believe Sifu Iso?





Read more:http://www.btinvest.com.sg/blogs/2013/01/21/there-is-a-way-to-time-the-market/

iPunter      ( Date: 21-Jan-2013 12:41) Posted: Maybe the market wants to make it more trok by going higher  ...         Higher can mean a more drastic fall from the peak...           until people are really pengsan... lol... alooloo      ( Date: 21-Jan-2013 10:43) Posted: I cannot disagree with you... after comparing your target vs reality....