The Easy Way To Profit From a Booming Market

There is an easy and cheaper way that you may profit from the booming stock market.
For example, simply just buy into the entire Singapore stock market or what we usually refers to as the index of the country's stock market.

In Singapore, it is known as the 'Straits Times Index' that measures the performance of the Singapore stock market.

The Singapore Straits Times Index(STI) is being calculated based on the weighted-average prices of the 30 component stocks listed on the Singapore Stock Exchange.

We may buy into STI ETF which is known as Straits Times Index Exchange Traded Fund that is designed to track the performance of the STI.

An ETF counter is being traded just like any other stock counter listed on the Singapore Stock Exchange.During the boom market, the index will usually tend to trend higher and thus the Exchange Traded Fund prices will also rise/appreciate. You tend to make money if you are able to hold it on a longer term.

The closing price of the STI ETF as of 12th October 2010 is $3.24 per shares and buying one lot ( 1000 shares) on this STI ETF will cost you $3240.

STI ETF also pays yearly dividends of about 2 - 3 percents.
If the Singapore Straits Times Index is able to reach the high of 3800 points then the price of this STI ETF would also rise likewise.
Of course, if the STI ETF has reached a new high, then it will be good for you to take profit and then buy back later at a lower price.

N.B.
(Invest at your own decision)