Investing With Feng-shui

Feng-shui is the Chinese philosophy of harmony. Its roots stretch back thousands of years.

Many people in Singapore observe and practice Feng-shui for both prosperity, luck and guidance. Some people even believe that Feng-shui has a bearing on the markets.

As Chinese New Year edges closer, let’s take a look back at some of the Feng-shui predictions that were made for the Year of Goat by the CLSA Feng Shui Index, which is a Hong Kong-based broker, and Master Lynn Yap.

Here are some of their predictions:

  1. Gold prices will hit $1,450
  2. Oil prices will fall for first half but rise in October
  3. The euro will fall further
  4. Property prices will fall but rise towards year end
  5. “Metal” element companies, such as bank, steel, robotics and law firm shares will do very well.
  6. China based investments will do very well
  7. “Water” element companies will do badly, including internet, shipping, oil, airlines and tourism.

Gold bugs will be disappointed that the stratospheric rise to $1,450 did not materialise. Gold has plunged 12% to $1,100 an ounce. As for oil, it is pretty self-evident. Prices went down, went up, went down sharply and stayed down.

The euro, on the other hand, did depreciate from US$1.2 to US$1.09 as predicted. Meanwhile, Singapore property prices has fallen a little. According to the HDB Property Price Index, prices slipped but the slip has hardly been meaningful.

According to the geomancers, banking stocks were supposed to do well for the year. DBS Group (SGX: D05) has declined 17%. Oversea-Chinese Banking Corporation (SGX: O39) has fallen 13%, while United Overseas Bank (SGX: U11) has dropped 16%. Banking stocks were some of the worst performers in the Year of the Goat.

The geomancers did get something right, though. Shipping and oil companies were supposed to do badly – and they did. Yangzijiang Shipbuilding Holdings (SGX: BS6), Keppel Corporation (SGX: BN4) and Sembcorp Marine (SGX: S51) have done terribly. Neptune Orient Lines (SGX: N03) might have done badly too, if not for the buyout offer by CMA CGM.

What about China? China has pretty much dominated the news for the year. Its stock market started off the year with a 58% rise, which was promptly followed by a 40% drop. But has it done well? The jury is still out.

As with all prediction, they are sometimes right, sometimes wrong. But what is clear, is that we should not base our investment decisions on them.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor, Wilson Ong, doesn’t own shares in any companies mentioned.