This Monday ethnic Chinese around the world will celebrate New Year, the “Year of the Fire Monkey” according to the traditional lunar calendar. Chinese New Year is their biggest celebration with millions of Chinese traveling for family gatherings. Exchanges in mainland China and many shops across Asia will remain closed.
Many Chinese are superstitious and pay close attention to the statements of astrology and mythology in the Chinese traditional culture. The elements of wood, fire, water, earth and metal, coupled with the yin-yang concept, form the basis of Chinese astrology. This strong belief in Chinese astrology will also affect investors’ behavior in Asia and to a certain extent will also have a bit of influence on rest of the world.
What can be expected from the “Year of the Fire Monkey”?
The monkey is considered as intelligent, optimistic, clever, curious on the one side, but also as selfish, arrogant, manipulative and even reckless with a lack of social empathy on the other side. It is a tricky and playful animal, promising surprises, twists, and turns.
Fire is in Chinese’s astrology masculine and positive – a yang element – and stands for warmth, energy, action, movement and expansive energy.
The combination of both could mean erratic movements, turbulences, high volatility but with a positive outcome at the end of the year as fire stands for red and red for luck. To outwit the monkey, investors have to be smart, quick-witted and decisive in making investment decisions.
According to this interpretation, the upcoming year might not be easy for investments. Greater and more frequent market swings are expected in the Year of the Monkey. The annual CLSA Feng Shui Index report predicts metals and water-related industries will strengthen in the first half of the Fire Monkey Year. The best strategy could be to buy gradually over the next six to twelve months instead of timing markets.
Let’s see how long this monkey will cause us a headache before it gets tired and calms down.
