The Chinese Year of Dog is a good time to be cautious when it comes to finances, according to this year’s CLSA Feng Shui Index.
CLSA, a Hong Kong-based capital markets and investment group, has launched its 24th index, a tongue-in-cheek alternative look at what’s in store in the Chinese New Year.
The guide, which farewells the Year of the Rooster, also includes top sector picks, property tips and zodiac predictions for health, wealth, love and careers in the Year of the Earth Dog.
Feng Shui is a mystical system used in China seeking a balance between people and the elements of the world. Feng Shui masters are regularly consulted, sometimes at great expense, to make sure buildings about to be constructed are sited in harmony with its surroundings.
“The Dog represents duty and loyalty and is a sign of defence and protection,” says CLSA.
“It’s a good time to be level headed and to err on the side of caution. Entrepreneurs should stick with their most loyal clients, and investors are advised not to bite off more than they can chew.”
The path of the Hang Seng index as mapped by the Feng Shui experts:
According to the index, there could be a stock market high ahead.
It says: “The Earth Dog jumps out of the kennel, tossing the Fire Rooster back to the barn and sending the Hang Seng index in Hong Kong skyward.
“After a great start, the hound takes a tumble in March which sees the Index head south.
“Through to summer the market chases its tail and drops, before the Dog and our favourite Earth Rooster, the HSI (Hang Seng index), extend a little more consideration towards each other and get back on track.”
In terms of sectors, the index says to stick with pharma and consumer as the Earth Dog sees strong gains in wood-related industries overall.
Telcos/internet, technology and utilities perform well but casinos and transport won’t get a leg up until October.
“Investors who expect decent returns from banking and financials are definitely barking up the wrong tree this year,” says CLSA.