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Korea didn't do as well as Singapore last year. So it may outperform this year. Korean stocks, Asia's 2nd cheapest, could attract investors. Some strategists are also urging investors to follow Buffett's lead.
Is Korea a better buy than Singapore ?
I hold positions in both indices but with STI near 19p/e I am worried.
I hold positions in both indices but with STI near 19p/e I am worried.
MSCI Korea: 10Yr returns: 13.09, P/E=15.88, P/B=2.26 Semiconductors=19.78% of Index
MSCI Taiwan: 10Yr returns: -1.58, P/E=20.17,/ P/B=3.24, Semiconductors =24% of index
MSCI Singapore: 10Yr returns: 2.83, P/E=19.9, P/B=2.83, Banks=35.17% of index
MSCI Korea: 10Yr returns: 13.09, P/E=15.88, P/B=2.26 Semiconductors=19.78% of Index
MSCI Taiwan: 10Yr returns: -1.58, P/E=20.17,/ P/B=3.24, Semiconductors =24% of index
MSCI Singapore: 10Yr returns: 2.83, P/E=19.9, P/B=2.83, Banks=35.17% of index
Based on the above a simplistic analysis I would say that Korea is the best buy. Buffet seems to agree and has picked up some shares in the steel major POSCO which is 7.6% of the Korean index.
In Singapore you can buy the Lyxor Korea ETF , in the us you can buy EWY.
Disclaimer: I already own the Lyxor Korea ETF and am invested in a Singapore Index.
I am not sure if the numbers above include reinvested dividends. The P/E also seems to be different from other estimates I have seen, possibly because they may be using only annual figures and not TTM and also because the more bullish analysts usually mention forward P/E instead of trailing P/E.
from:
http://longtermequity.blogspot.com/
A different estimate for valuation using forward earnings is at
http://www.fundsupermart.com/main/articleFiles/Sector_Reviews/SG/en/pdf_Summary.pdf
MSCI Taiwan: 10Yr returns: -1.58, P/E=20.17,/ P/B=3.24, Semiconductors =24% of index
MSCI Singapore: 10Yr returns: 2.83, P/E=19.9, P/B=2.83, Banks=35.17% of index
Based on the above a simplistic analysis I would say that Korea is the best buy. Buffet seems to agree and has picked up some shares in the steel major POSCO which is 7.6% of the Korean index.
In Singapore you can buy the Lyxor Korea ETF , in the us you can buy EWY.
Disclaimer: I already own the Lyxor Korea ETF and am invested in a Singapore Index.
I am not sure if the numbers above include reinvested dividends. The P/E also seems to be different from other estimates I have seen, possibly because they may be using only annual figures and not TTM and also because the more bullish analysts usually mention forward P/E instead of trailing P/E.
from:
http://longtermequity.blogspot.com/
A different estimate for valuation using forward earnings is at
http://www.fundsupermart.com/main/articleFiles/Sector_Reviews/SG/en/pdf_Summary.pdf
On valuation of this etf ?