Investment Market Forecast
At an HSBC investment talk back in February, I was invited to share a session on investment forecasts from the Feng Shui perspective. I have included some key findings to share with Squarefoot readers.
2012 is the year of the dragon and it’s also the “Ren Chen” year of the “Za Zi” (60 years cycle). As “Ren” inherits the water sign and “Chen” inherits the earth sign, 2012 is a combination of “Water and Earth”. But how does “Water and Earth” affect the investment market of 2012?
I discovered that there is a commonality in all the years of water and earth. The years 1973, 1982, 2003 and 2008 are all the years of water and earth. The first time that I heard of a financial crisis was in 1973, when Hang Seng Index dropped 90% within a few days. In 1982, the market dropped after Mrs. Thatcher’s visit to China; and in 2003 the investment market came to a halt, as a result of the SARS epidemic. The crisis of the Lehman Brothers’ mini-bond extended to the financial tsunami in 2008 and Hang Seng Index dropped over 15,000 points. With these historical events as evidence, my subjective prediction for “Water and Earth” for the year 2012 is a pessimistic and fluctuating market year.
Are we all threatened by the idea of a possible “financial crisis”? Or are we looking forward to “Uncertainty for greater opportunities”? Everyone knows the concept of “Buy Low, Sell High”, but how many of us really understand the Highs and the Lows? Take the year 2003 as an example: your portfolio would’ve given you a 100% return if you had invested in that year and kept your investment until today. Likewise, investment in 2008 would’ve given you a 30% return.
I believe that detailed planning and making accommodating arrangements can possibly bring fortune and high returns. Taking in consideration the concept of a “Water and Earth” year, along with some historical data, short-term investments seem to be more considerable during a fluctuating market. If you are a typical long-term investor, however, this might be the time for you to plant seeds for your next great harvest! Good luck!