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Subject: (BN ) Year of Rat May Portend Losses in Asian Stocks, Astro
Date: Mon, 4 Feb 2008 23:01:18 -0500
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Year of Rat May Portend Losses in Asian Stocks, Astrologers Say
2008-02-04 18:21 (New York)
By Chen Shiyin
Feb. 5 (Bloomberg) -- Chinese astrologer Tony Tan, a former
broker at DBS Securities, made money for his clients in 2007 by
telling them Asian equity markets would turn in ``peak
performances'' in the Year of the Pig. He's predicting losses in
the Year of the Rat, which starts this week.
``Just like a rat, investors will have to be nimble,'' said
Singapore-based Tan, an astrologer since 1995 and founder of the
Harmony Academy of Chinese Metaphysics. ``It's going to be a highly
competitive year.''
Chinese astrology, based on a mix of philosophy and astronomy
dating back more than 3,000 years, has 12 animals that combine with
five elements to define each year, making up a 60-year cycle. This
year the Rat, a ``water'' creature, combines with the ``earth''
cycle, another unstable combination according to Tan.
Stock markets are already falling. The MSCI Asia Pacific Index
dropped 9 percent in January, its worst monthly performance since
September 2001, after a 12 percent gain last year. Benchmarks in 11
of the region's 14 largest markets including China, Hong Kong and
Singapore reached all-time highs in the Year of the Pig. MSCI's
Asian index reached a record on Nov. 1
Tan expects markets to bottom out in April, a ``dangerous''
month for stocks because of clashing elements. Prices may rebound
as the Year of the Rat continues, without setting new highs, he
said.
``The Year of the Pig was one of optimal strength,'' Tan said.
``We're not going to see a repeat of those gains.''
More than 60 percent of 1,572 South Koreans surveyed recently
said they had consulted an astrologer for the Lunar New Year or
planned to do so, according to CareerNet Co., an online job-
information provider in Seoul.
Favorable Elements
Some fortunetellers are more bullish than Tan. Malaysia-based
Joey Yap, whose feng shui seminar in Kuala Lumpur last month drew a
crowd of more than 3,000 participants, said there will be plenty of
opportunities to profit this year.
``There's uncertainty, but there's also a lot of activity and
growth,'' Yap said. Investors should buy shares of companies in the
commodity-related, medical and transportation industries, he said,
citing their favorable elements in this lunar year.
In the last Earth-Rat Year between Feb. 10, 1948, and Jan. 28,
1949, China was divided by civil war and Japan was still recovering
from its defeat in World War II. The MSCI Asia index fell 19
percent in the most recent Year of the Rat, a ``fire'' year,
between Feb. 19, 1996, and Feb. 6, 1997.
The new lunar year begins Feb. 7 in many Asian countries
including China, marking the start of a week-long holiday.
Beat Lenherr, who helps oversee about $20 billion as chief
global strategist of LGT Capital Management in Singapore, has
consulted a fortuneteller -- who makes divinations based on
readings of the stars, numbers and energy flows -- for both
personal and professional advice for the past eight years.
``Uncertainty will prevail and volatility will continue to be
high,'' said Lenherr.
--With reporting by Anand Menon in Singapore, Hanny Wan in Hong
Kong and Shintaro Inkyo and Sam Waite in Tokyo. Editor: Malcolm
Scott, Nicolas Johnson.
To contact the reporter on this story:
Chen Shiyin in Singapore at +65-6212-1170 or
[EMAIL PROTECTED]
To contact the editor responsible for this story:
Nicolas Johnson +81-3-3201-8343 or
[EMAIL PROTECTED]
