iFund- “Fire” sectors will perform well in the Year of Pig

2019-03-19 10:10
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For sectors, based on the five phases, CLSA is most optimistic about “fire” sectors, which include tech, telecommunications, petroleum by-products and utilities. The related sectors will rise early on and through the late spring and early summer. Tech stocks should do well, but will weaken through the summer.

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The Year of the Pig is coming. Noble Apex wish all of you Happy Chinese New Year! The market is volatile in the Year of Dog. Will it keep being volatile the Year of Pig? Let’s learn from the insights of CLSA Feng Shui Index Report.

HSI will perform well in May and June

The birth date of the Hang Seng Index (24 November, 1969) makes it an “Earth Rooster”. In the Year of the Earth Pig, CLSA says the HSI has a complicated fate. Its report states, “fortunes will shine in May, June and the final trimester, with November shaping up as the best month to fatten your wallet. February, May, August and November will be the most unsettled, with sudden drops or rises likely to take the market by surprise.”

Figure 1: 2019 Feng Shui Index

Source: CLSA

Tech stocks will weaken through the summer

For sectors, based on the five phases, CLSA is most optimistic about “fire” sectors, which include tech, telecommunications, petroleum by-products and utilities. The related sectors will rise early on and through the late spring and early summer. Tech stocks should do well, but will weaken through the summer.

Figure 2: Estimated monthly performance of fire sectors in the Year of Pig

Source: CLSA

The Feng Shui Index is interesting. However, when investing, investors should also consider other factors such as investment horizons, objectives and risk tolerance. Finally, let’s review the forecast of the Feng Shui Index last year and the actual performance of the Hang Seng Index (Figure 3).

Figure 3: Comparison between the 2018 Feng Shui Index and the Hang Seng Index


Source: CLSA

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