Market Review At Feng Shui Angle

Earlier in the year, I have made some forecast on 2012 financial market. In my <a a="" previous sharing, it is predicted that this year, the “Ren Chen” (壬辰) Year, would be a pessimistic and fluctuating one. “Ren Chen” is the order of the year in the Chinese Almanac Calender. “Ren” (壬) inherits Water element and “Chen” (辰) inherits Earth, making 2012 a combination of Water and Earth.

With historical supporting, my subjective forecast for this Ren Chen 2012 Market was pessimistic. Here’s a list of the major fluctuations in the financial markets during the “Water and Earth” years(水土之年).

  • Financial crisis in 1973 when Hang Seng Index dropped 90%;
  • The market dove after Lady Thatcher’s visit to China in 1982 to discuss the political handover of Hong Kong in 1997;
  • The market came to a halt, as a result of the SARS pandemic in 2003.
  • The extension of the Lehman Brother’s Mini Bond crisis and the financial tsunami in 2008, which Hang Seng Index dropped over 50%.

As we entered the month of September, a good part of 2012 is already behind us. This is good time to have an interim review and forecasts the remaining bits of 2012, with reference to feng shui elements. 

May 5th 2012 was the date of “Lixia” (立夏) or the start of summer in Chinese Almanac Calendar and it was also a turning point for the Hang Seng Index. It went downhill, dropping 1,500 points, in 8 consecutive days, and remained under 19,000 points for the next few weeks. By the beginning of September, after several rounds of recovery, the index continues to hover within the 19,000 range. 

From a Feng Shui perspective, the weakening of the Index is caused by Wood and Fire elements represented by the three summer months: “Yi Si” (乙巳), “Bing Wu” (丙午) and “Ding Wei” (丁未). The combination of Wood and Fire weakens the Metal elements needed to support market performance, hence the weaker performance. 

 Is the market going to drop in the remaining days of 2012? In addition to forecasting with historical index data, the Five Elements can also give us some insights towards the upcoming performance. 

As per the Almanac Calendar, August 7th 2012 – “Liqiu” (立秋), marks the beginning of autumn. The following three months, “Wu Shen” (戊申), “Ji You” (己酉) and “Geng Xu” (庚戌), are combination of Earth and Metal. This combination will create some steam for the market, creating some good opportunity for short term investors. It is important to note, however, the market will shift again in early November. Winter begins on November 7th 2012 – “Li Dong” (立冬). The following months, “Xin Hai” (辛亥), “Ren Zi” (壬子) and “Gui Chou” (癸丑), are themed by Water. Water will weaken the Metal elements, weakening the financial market at a much greater scale than it did in the summer months. 

For 2013, it will be the “Gui Ji” (癸巳) year, a combination of Fire and Water. These two repelling elements are known to bring fluctuations. Long term investors can keep a good look out for opportunities, during its drop in 2013. 

Feng Shui perspective provides us an alternate insight to market performance. It is important to remember, however, there is always risk in financial investments. Don’t forget to assess and manage your risks and invest based on your abilities. Good Luck!