EWS – Singapore Stock Market Offers Great Risk/Reward
|March 17, 2016||Posted by Oddmund Grøtte under Stock Analysis|
Share price when article published: 10.71 USD
Singapore have the smartest people in the world according to several IQ rankings . Even better, they are also very hardworking and can prosper in the worlds most free economy together with Hong Kong (according to Heritage Foundation). This has resulted in one of the wealthiest countries in the world, the place where there are more millionaires per capita than anywhere else on the planet, even without any natural resources to speak of. Here are some facts about valuation right now:
- Total market value of all stocks traded in Singapore amounts to about 107% of the country’s GDP. This is historically a low valuation, to my knowledge. Warren Buffett considers it “probably the best single measure of where valuations stand at any given moment.”
- Book value is now about 1.1, historically low. This makes Singaporean stocks a much greater bargain than those in the West.
- EWS, Singapore ETF, pays a dividend of 4.2% with todays price of 10.7 USD.
- Singapore dollar is at its lowest level since 2010. An appreciation from here is to your advantage (unless you are Singaporean, of course).
Margin of safety should be low now if you have a time frame of some years.
I own EWS shares.