Monkey baits bull or stokes bear?

by **Cals** Tue 12 Jan 2016, 00:42

Monkey baits bull or stokes bear?
By Yimie Yong / The Edge Financial Daily | January 11, 2016 : 10:00 AM MYT

This article first appeared in The Edge Financial Daily, on January 11, 2016.
[You must be registered and logged in to see this image.]Hor: Petroleum is categorised as an earth-related industry. Therefore, crude oil is expected to recover.
KUALA LUMPUR: The year 2016 is the Year of the Fire Monkey, but will it be a monkey that baits the bull or stokes the bear?
It seems the bear may be the monkey’s choice — at least in the early part of the year, when volatility and uncertainties are likely to rule the Malaysian economy and the local stock market, feng shui experts told The Edge Financial Daily.
Feng shui practitioner Jane Hor said fluctuations in the local stock market are only expected to stabilise after August, before normalising from October.
In feng shui analysis, the year’s heavenly stem is “fire”, but its earthly branch — represented by the monkey itself — is of “metal”.
This, said Hor, means the two yearly elements will be clashing with one another, indicating that there will be a lot of conflicts in the year ahead, with terrorist activities expected to continue hogging headlines.
Kenny Hoo, Good Feng Shui Geomantic Research founder and chief researcher, concurred with Hor’s views and said uncertainty will be the theme of the year.
“Like the monkey’s active nature, the stock market will see a lot of ups and downs,” he wrote in an email response to The Edge Financial Daily.
He said the first half of 2016 will be more volatile, and negative news — like natural disasters, outbreaks of diseases, political uncertainties and accidents — will likely cloud the months of February, April and August, and rock the stock market.
“This is a year when the good (or strong) will become stronger, and the bad or weak ones will be phased out,” Hoo noted, adding that investors can selectively buy low in February, May and September.
He said more positive news should emerge to spur the local market in June and September.
“The economic outlook continues to be challenging. However, this year, we shall see more problems being resolved gradually. The economy will be more stable from September,” he noted, adding that the Southeast and East will be more stable in 2016, as the Wealth Star resides in these regions.
Hoo explained that “metal” is the key factor and wealth star in 2016. Thus, metal-related industries will be the key sector to help turn around the market, especially from the third quarter of the year.
“Metal-related industries, such as banking, finance, insurance, foreign exchange and offshore investments, should see better business opportunities,” he forecast.
Hor, meanwhile, expects to see mergers and acquisitions in metal-related industries, which, besides the ones above, also include entertainment, gaming, as well as the jewellery and automotive industries.
“When the metal element is too strong, some of it will have to be purged. Therefore, there will likely be mergers and acquisitions,” she said.
She is of the view that earth-related industries, such as property, infrastructure and funeral businesses, will perform well.
“Petroleum is also categorised as an earth-related industry. Therefore, crude oil is expected to recover,” she predicted.
But Hoo, on the other hand, opined that earth-related industries, such as the property sector, will continue to face more challenges, and a lot more efforts will be required to revive the market.
Hor said there will be two “illness stars” in the Year of the Fire Monkey, implying there may be outbreaks of new viruses or diseases. As such, she expects the healthcare and pharmaceutical sectors to do well.
Though Hor and Hoo have differing views on earth-related industries, both opined that wood-related industries — such as the plantation, publication and timber industries — will not see a favourable year.
“These sectors will face a lot of changes and stiff competition. Some may be [forced] out of the game,” warned Hor.
“Bad weather conditions will also create more challenges for the plantation sector,” added Hoo.
Due to the lack of water elements, both feng shui practitioners said bad weather is expected in the Year of the Fire Monkey.
“Due to bad weather, which will affect harvests in the agriculture sector, there might be an increase in the cost of food,” Hor added.
Hoo also said unfavourable weather conditions are expected in 2016. Floods and landslides are expected in the first half, with droughts to feature in the second half, which should prove challenging to water-related industries like logistics, travel and tourism.
Hor, however, is of the view that water-related industries will do just fine, while fire-related ones, like technology and semiconductor firms, are likely to see a so-so year.