Happy Chinese New Year too all! May the dog year be a prosperous time for all!
I was going through a Chinese astrology book to gleam some investment insights for the year of the Dog.
According to the Fengshui Master, the year of the dog is a fire poison dog. The economy will continue to run robustly but there will be many uncertainty around, particularly in the area which has fire and poison in it. What are the possible areas of concern in this interpretation? For the element of fire, we have bombs (terrorists?), forest fires, droughts. Anything got to do with electricity is also associated with fire, which consist of hand phones, laptops, televisions, light bulbs etc. For the poison element, we have food poisoning, bird flu etc. Therefore, according to Chinese Fengshui, there will be potential market shocks in the area of terrorist attacks and flu outbreaks. Combining fire (computers) and poison (viruses), I shall boldly infer that there will be a risk that a computer virus will wreck the world computing system and it will create chaos in the world economic system?!?
The master also predicted that the Singapore market will not do well, India and Japan markets will undergo a correction before moving up and the year of the dog is favorable to the Thailand market. The Hong Kong Market will stagnant and correct in April and will rally strongly after August.
Now, this is a strange coincident with many analyst who are favorable on the Thai market while becoming less favorable with the India and Japanese economy. I wonder if the Fengshui Master read investment reports.
World Market Performance
The world markets had a major rally during the month of January with Europe doing the best followed by Asia Ex-Japan. The Japanese market did not do as well due to the Livedoor Scandal. The Japanese market fell by 7% within two days as Japanese investors fled the market. Subsequently, the market recovered quickly.
The morale of the story? Asian markets are prone to huge volatility in the face of market shocks and unfavorable events. This is unlike the Asian Currency Crisis whereby foreign investors fled the Asian markets in a matter of days and left the markets and their local investors in shambles. There is no free lunch in this world. An investor can reap high returns by investing in Asian markets. However, there is also a higher risk that the markets will fall even before the investors can react.
Conclusion
Taking into consideration of the advice from the Fengshui Master that the year of the dog will be full of market shocks which consist of fire and poison, it will be wise not to be too aggressive in our investments and concentrate them in one region. Bonds as a form of insurance in this kind of markets will create a buffer against sudden shocks. The world economy is still sound abide that growth will slow. It is still a good time to stay invested.
I was going through a Chinese astrology book to gleam some investment insights for the year of the Dog.
According to the Fengshui Master, the year of the dog is a fire poison dog. The economy will continue to run robustly but there will be many uncertainty around, particularly in the area which has fire and poison in it. What are the possible areas of concern in this interpretation? For the element of fire, we have bombs (terrorists?), forest fires, droughts. Anything got to do with electricity is also associated with fire, which consist of hand phones, laptops, televisions, light bulbs etc. For the poison element, we have food poisoning, bird flu etc. Therefore, according to Chinese Fengshui, there will be potential market shocks in the area of terrorist attacks and flu outbreaks. Combining fire (computers) and poison (viruses), I shall boldly infer that there will be a risk that a computer virus will wreck the world computing system and it will create chaos in the world economic system?!?
The master also predicted that the Singapore market will not do well, India and Japan markets will undergo a correction before moving up and the year of the dog is favorable to the Thailand market. The Hong Kong Market will stagnant and correct in April and will rally strongly after August.
Now, this is a strange coincident with many analyst who are favorable on the Thai market while becoming less favorable with the India and Japanese economy. I wonder if the Fengshui Master read investment reports.
World Market Performance
The world markets had a major rally during the month of January with Europe doing the best followed by Asia Ex-Japan. The Japanese market did not do as well due to the Livedoor Scandal. The Japanese market fell by 7% within two days as Japanese investors fled the market. Subsequently, the market recovered quickly.
The morale of the story? Asian markets are prone to huge volatility in the face of market shocks and unfavorable events. This is unlike the Asian Currency Crisis whereby foreign investors fled the Asian markets in a matter of days and left the markets and their local investors in shambles. There is no free lunch in this world. An investor can reap high returns by investing in Asian markets. However, there is also a higher risk that the markets will fall even before the investors can react.
Conclusion
Taking into consideration of the advice from the Fengshui Master that the year of the dog will be full of market shocks which consist of fire and poison, it will be wise not to be too aggressive in our investments and concentrate them in one region. Bonds as a form of insurance in this kind of markets will create a buffer against sudden shocks. The world economy is still sound abide that growth will slow. It is still a good time to stay invested.
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