Thursday, January 17, 2008

Detailed fengshui analysis for the Earth Rat year

My special guest blogger, skyalps, wrote this summary of the fengshui analysis by Raymond Lo for the year 2008. Thanks pal, for the great summary on what to expect. Do your own analysis and research before committing your money, as always.

--------------------------------------------

Personally, I found the talk quite interesting as I had little prior knowledge of Fengshui and Chinese Astrology. However, I noted that the examples he gave were typically those that had already happened and which he could use his analysis to explain why it happened. Therefore, do read it with a pinch of salt as it is quite general in nature and even he himself qualifies by saying that he is not a prophet and many things could affect the actual outcome.

Basically, his analysis of what's going to happen in 2008 is based on the theory of the 5 Basic Elements of Metal, Water, Wood, Fire, and Earth. In order to understand the order of nature, we need to know the order of the 5 elements which are:

Birth Cycle

Metal --> Water --> Wood --> Fire --> Earth --> Metal (repeat)

Destruction Cycle

Metal --> Wood --> Earth --> Water --> Fire --> Metal (repeat)

According to his previous talk in Jul 07, he had shared that the stock market would weaken in August and this turned out to be true (Remember the fall in the markets in Aug?). He said that 2007 was the year of the Fire Pig. The pig represented the element of water (Yin) which clashed with fire (Yang), as such the stock market was turbulent and unstable. The first half of 2007 belonged to the fire element which represented optimism and that was why the stock market rallied. However, from August onwards the water element came and cooled the stock market. Water represents fear and the month of December belonged to the water element which caused more destruction. Well, this was an interesting way to explain the volatile markets from Oct to Dec 07...

Now for 2008, the coming year of 2008 will be the year of the Earth Rat. Earth belongs to the Yang element while Rat is a water element (Yin). Again, this would not be a harmonious relationship as earth conquers water as you can see from the destruction cycle above. He revealed that the year of the Rat would be a year of false stability. He used the analogy of an ice-berg where you can only see the tip of the ice berg while the rest of it is submerged under the water. Using the element of earth and water, he explained that it is like a solid structure (Earth) floating on water where it is unstable and there are many undercurrents. He believes that the general outlook for the markets in 2008 would be less turbulent like in 2007 but the overall trend would be one of cooling down. He said there could be potential for positive action for the markets from Feb 08 onwards and especially for the months of May and Jun which would be very prosperous (Hold your positions now and start to load up after Feb??? Hmm...). However, he advised to be more cautious from August 08 onwards as the water element would arrive again and inject fear into the markets.

In terms of sectors, he believes the industries belonging to the elements of metal, earth, and wood would be favourable.

Wood: Publishing, Environmental
Earth: Property, Hotel, Chemicals, Mining
Metal: High Tech, Computing

The industries that are not so favourable are those belonging to water and fire elements.

Water: Transport, Communications, Shipping
Fire: Finance, Entertainment, Energy, Airline

Interestingly, he mentioned that the month of Dec 07 belonged to the Rat and water element. Therefore, he revealed that what happened in Dec and your luck in that month would give you a good indication of what was to come in the new year.

Whether or not you want to believe in it is up to your individual choice. As they always say, do your own research before taking any action. It will be interesting to revisit this in June 08 and see if what he had predicted had come true.

------------------------------------------------------------------

Today there is a big rebound..okay, maybe it's not very big. But it's a welcome relief nonetheless. Falling so heavily for the past few days, it's a welcoming sight to come home and see that my watchlist actually shows green counters! It's still early to say whether this confirms the end of the downturn, or the start of an upturn. For all we know, it could simply be a retracing before it goes further, since stock market do not go in a straight line down or up. Be cautious.

HSBC sank, then rose to touch 119.9 before closing at 119. 120 is a possible resistance level for now. Let's see how it handles 120.

ML just reported another 10 b loss...tonight Ben is speaking too. Dow futures stand at -25. Tmr finally ends this wild week for the year 2008.

2 comments :

musicwhiz said...

Hi LP,

It's far from over, there will be a lot more volatility and nerve racking sharp "drops" and equally quick rebounds; but that's the nature of the stock market.

Invest long-term and in fundamentally sound companies with good earnings to ride through the volatility. At the same time, enjoy some dividends along the way. :)

Regards, Musicwhiz

Drizzt said...

I like this! thanks for the advice!