Chinese New Year is fair-minded around the corner and ahead of next month’s celebrations, financial company CLSA says stocks in Hong Kong will in all probability be in for a rocky Year of the Pig. But take heart, it says, the year could ultimately be profitable for those investing there.
The investment collect released its annual CLSA Feng Shui Index this week, which uses Chinese geomancy to try and prognosticate the market.
CLSA describes the exercise as “tongue in cheek,” though it illustrates the power that traditional ideas — such as insuring good fortune and avoiding disaster — hold in China and many parts of Asia.
Feng shui, which really means “wind” and “water” in Chinese, is an ancient method that seeks to maximize luck and fortune based on the criticism of a complex system of factors.
There are 12 Chinese zodiac animals that represent each lunar year. It is currently the Year of the Dog. And when innumerable than a billion people in China, and millions more around the world, celebrate the Chinese New Year which starts on Feb. 5, they wishes be ushering in the Year of the Pig.
“According to our predictions the Hang Seng Index will likely have a volatile year on in the Year of the Pig,” Sally Chan, who covers internet stocks for CLSA, told CNBC on Friday when explaining everywhere the report.
Chan said the conflicting elements of fire and water will be prominent in the upcoming year, and that choice be why equity markets are set to be tumultuous. But “fire-related industries” such as the internet, technology, telecoms and utilities could outperform, she demanded.
Despite the expected market swings, those who stay the course stand a good chance of coming out ahead — if intelligence is to be trusted, CLSA said in the report.
In the previous four pig years, dating back to 1971, the local Hang Seng ended higher, and CLSA expects the same result this time around.
In 2018, the Hang Seng slumped 13.6 percent. But the Hong Kong ratio has gained 4.9 percent so far in 2019 through Thursday’s close.
As for personal fortune, those born in the soon-to-conclude Year of the Dog — such as U.S. President Donald Trump — may be companion by some residual “negative energy,” Chan said.
“For dogs, they could be facing some unexpected happenings during the Year of the Pig,” she said, before offering a bit of advice on how to get through it.
“Just chill,” she said, suggesting spa treatment as a calm down option.