Slowing Singapore Economy Drives Profit Drop

The video discusses the economic challenges faced by Singapore, including a profit drop in companies listed on The Straits Times Index (STI) and a lowered GDP forecast due to US-China trade tensions. The STI has fallen by 5% this month, though it remains up 2% year-to-date. Despite lagging behind Thailand and Vietnam, it outperforms Malaysia and Indonesia. Investors anticipate monetary and fiscal stimulus, although none has been implemented yet. The STI's valuation is currently favorable, trading at 12 times forward PE, below the five-year average of 13 times.

What are the expectations of investors regarding stimulus measures in response to the economic situation?

What is the current trading valuation of the index compared to its historical average?