Feb 9, 2017

The 2017 Fengshui Guide to the Stock Market

As we ease into the year of the Rooster, experts all over the year put in a piece of their opinion how the market will fare. As a part of our annual tradition, we shall turn to the world of metaphysics and Fengshui to give us an insight how 2017 will be. However, before that, let us take a look to see how Fengshui has been accurate in predicting 2016: The year of the unpredictable fire monkey (Yeah Donald Trump and Brexit!)

From the looks of the two graphs, looks like Fengshui got most of the predictions wrong. But than again, who am I, a 30 odd year old, to question the legitimacy of an art that has been perfected over more than 3000 years of history.

Without further ado, let us take a look at the stock market prediction for 2017!

Judging from the prediction, we will see strong performance in China and Hongkong from April onwards. That period coincide with the French elections whereby populist presidential candidate Marine Le Pen may pull off another election upset and set the course for France to exit the European Union. That can be a possible force which can cause the market to rally. So if you are looking to make a quick buck and has strong faith in the reliability of Fengshui, you can consider Lyxor UCITS ETF Hong Kong or the unit trust from Allianz in that invest into the Hong Kong stock market.
Events of Jan 2017

January has been a dull month with US under-performing the rest of the world after the massive rally as a result of Donald's Trump presidential election. The reality of the negative aspects of President Trump's start to dawn on the investors and the market took a breather to digest on the possible actions that the new president will take.

As of now, the whole world is focused on Donald Trump's trade policy with China, which he has not done anything yet, despite repeatedly promising to punish China is one of his key agenda during his election campaign. The other immediate concerns will be the process of Brexit and the France presidential election. These two events will further determine the fate of the European Union and the European stock market.

One other worrying sign I notice recently is that the VIX index has reached a 2 year low. A low VIX typically indicates that the market is complacent and has a high chance of a major correction.
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