Bad Start to the Year

It's the first week of the year, yet there doesn't seem to be much worth celebrating (unless you're waiting for the market to fall before going in). Just today, the STI fell 74 points and some blue chips among them such as Keppel, fell by 6.5%, all in one day. What's happening?

Singapore Stock Market This Week

The past week we saw the STI drop back below the 3000 level. The price of crude oil and other commodities slumped this week as well and the results from some blue chips being dismal. A Fed rate hike is still on the cards, which basically sums up a pretty miserable picture.

Does the Recent Drop in the STI Represent a Good Buying Oppourtunity?

In recent weeks, the STI has lost almost 5% of market capitalization of its constituent stocks. Does this drop represent a good buying opportunity for investors? The current P/E ratio of the STI as a whole is 13.39 and the distribution yield is 3.05% (numbers from SPDR STI ETF page, the distribution yield was derived from the fund distribution yield plus the net expense ratio of the fund).

(STI- chart from Yahoo! Finance)