Gong Xi Fa Cai again! Kung Hei Fat Choy! According to the Chinese lunar calendar, the Year of the Tiger, or more precisely the Year of the Yang Water Tiger, has just begun on February 1st. In China and around many other countries in Asia, no important decision is made without looking at astrology and feng shui, at least a little. Astrology and feng shui is also influencing investment decisions in Chinese culture. The resulting self-fulfilling prophecies should therefore not be underestimated.[mepr-active membership=”1734″ ifallowed=”show” unauth=”message” unauth_message=”Please login or purchase a membership to view full text.”]
The tiger is the third of the 12-year periodic cycle of zodiac animals in the Chinese calendar. Each zodiac sign is associated with one of the five elements wood, fire, earth, metal, or water, and with either yin or yang.
2022 denotes the Year of the Water Tiger, which replaces the Metal Ox. According to the Chinese horoscope, the big cat stands for courage, adventure, optimism, assertiveness, and willingness to take risks. It symbolizes strength, bravery, courage, and perseverance furthermore. The Year of the Tiger may bring fiercely feline energy that encourages bold action and radical independence. But the tiger can also be unpredictable, arrogant, and self-centered, a character that serves itself at the expense of the whole.
The associated element of water stands for flexibility and openness, wisdom and intelligence, and gentleness and impermanence. It also symbolizes a new beginning.
What to expect as an investor in the Year of the Tiger in Asia, particularly in China?
2021 was a challenging year for markets. China’s Central Bank tightened its monetary policy. The education and internet sectors became more regulated. Growth continued to be dampened during the year as the zero-Covid strategy slowed consumption. Over-leveraged real estate companies struggled to service their debt. And the country grappled with energy supply shortages. In addition, the Chinese government announced a shift in policy priorities away from growth at all costs towards more widespread prosperity.
On the other hand, the cash in the red envelopes traditionally given away at the New Year celebrations gained value. Last year, the Chinese renminbi was among the best-performing emerging market currencies, gaining 2.7 percent against the US dollar and 8.1 percent against the China Foreign Exchange Trade System’s trade-weighted basket of currencies.
While the rest of the world struggles with tighter monetary policy, China is on an easing path. Regulatory reforms may have peaked or may already have passed. The stock market should benefit from this development. The current valuation offers attractive entry points and opportunities.
A look at the industries that are supposed to perform well in the Year of the Water Tiger. Here are some of the feng shui masters’ predictions:
GREAT: This years’ water and wood element is expected to bring prosperity to metal and earth industries. Metal industries are typically banking, carmakers, machinery, engineering, beauty, and skincare. While earth industries include real estate, land development, mining, insurance, computer software, and technology.
GOOD: The year should also be ok for water industries such as communication, transport, and shipping.
TO AVOID: Wood and fire industries should be avoided. Both might not prosper this year. Wood industries such as textile, media, paper, and magazines, may face serious competition. While fire industries may not make money at all in the Year of the Tiger.
The worst months of this year, according to feng shui, will be February, August, and November. But no worry! By hanging a six-metal rod wind chime at your door, everything will be fine.
In this sense, we wish you a healthy and prosperous year ahead!
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