I must first apologise for the Singlish title — but that was the exact phrasing I heard from a trading rep about four months ago. I was sharing that the Singapore market was turning bullish back then, and the STI was around 4,000. That question came almost immediately: “Still got upside meh?”
And lately, I’ve been getting the same question in different forms — especially now that the STI has climbed even higher. Just yesterday, the STI touched the 4,300 mark intraday (a new all-time high), before closing slightly lower. Still, it’s a record.
Why Are Investors So Scared of All-Time Highs?
Many investors fear all-time highs (ATHs). They think that once a stock or index hits a high, it must come down — as if it’s some kind of ceiling. Like throwing a ball at the roof, surely it has to bounce back down, right?
But the market isn’t governed by physics. It’s virtual. And all-time highs are actually bullish, not bearish.
We don’t have much STI data to backtest, but we can refer to the S&P 500. In 2025 alone, the S&P 500 has already made 20 new all-time highs. And it keeps going. That’s what markets do — break records. It’s not a ceiling; it’s just the next milestone.
But Isn’t It Risky to Buy at All-Time Highs?
The fear is understandable — no one wants to buy at the peak and watch prices fall right after.
But reality doesn’t work that way. In fact, research shows that buying on days when the market hits a new high often leads to better returns than buying on an average day. It’s counterintuitive, but strong markets tend to get stronger.
Of course, that doesn’t mean buying blindly. If you’re worried, then anchor yourself in valuation. Even in a record-high market, not all stocks are expensive — some are still undervalued. But beware of value traps — some stocks are cheap for a reason, like persistently weak financials or declining business models.
Is STI Overvalued?
Let’s look at the market as a whole.
The STI ETF is currently trading at a PE ratio of 13.64x, compared to a 10-year average of about 15x. That’s far from overvalued — in fact, you could argue it’s still reasonably priced.
What’s more, the dividend yield stands at 4.14%, which remains attractive, especially when you compare it to the current yields for T-bills and fixed deposits (both under 2%).
What About REITs?
One group that still looks undervalued: REITs.
Not all REITs are created equal. We prefer high-quality names — rising DPUs, mainly Singapore assets, and strong sponsors. We’ve mentioned these before and among which, CICT, Keppel DC, Parkway Life have delivered over 10% total return in the past year.
Still, many REITs are offering 5%+ yields, and with interest rates falling again in Singapore, the gap is widening. That could drive more demand — and in turn, lift prices.
But not all REITs have performed. For instance, Mapletree Industrial Trust is down 11% over the past year (including dividends). So opportunities are still available to those who are willing to find them.
Conclusion: The Bull Run Has Just Begun
If we zoom out, Singapore stocks have been flat for nearly a decade. Despite our economy growing and our companies doing better, the STI has largely moved sideways.
This recent rally? It’s catch-up. It’s the bull market making up for lost time.
And remember, the STI is still trading at reasonable valuations. It’s not a bubble. So yes, I believe there’s still more upside.
But — and this is important — don’t expect a straight line up. Markets will pull back now and then, even in a bull run. That’s just how it works.
So if you’re investing, stay grounded in fundamentals, and don’t fear ATHs.
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