Market Volatility? Let it be

Carmen Lee, head of OCBC Research, has rightly pointed out that at current price levels, we should be contrarians and be cherry-picking quality stocks that are set to benefit from mega trends such as artificial intelligence, e-commerce, mobile payments and biotechnology, etc. Some of these are:

	Price as at 10 Aug 2018	Target Price
Capitaland	3.39	4.09
DBS	25.59	31.83
Frasers Centrepoint Trust	2.26	2.49
Frasers Logistics	1.05	1.18
Keppel Corp	6.72	8.70
Mapletree North Asia Commercial Trust	1.14	1.42
ST Engineering	3.39	3.90
Singtel	3.14	4.08
UOB	28	32.09
UOL	7.03	8.48
Venture	17.94	23.23

With the recent softness in the market, the PB ratio of the STI has come off to around 1.1 times book value or more down one standard deviation below the historical average. In the past 10 years, the
PB ratio has fallen at least 1.5 standard deviations below the historical average on only two occasions - during the global financial crisis and the yuan devaluation in 2016. On both occasions, the market rebounded after a couple of months.
https://www.straitstimes.com/business/market-volatility-let-it-be