‘Year of The Ox’ Signals Drop for Asian Stocks, Astrologers Say

Tony Tan, a Singapore-based
astrologer, is urging investors heading into the ‘Year of the
Ox’ to emulate the beast that lends its name to the lunar new
year -- be patient and deliberate.

Concerns about the global economy that pummeled Asian stocks
in 2008 will persist, causing the MSCI Asia Pacific Index to
extend last year’s record 43 percent slump, according to
astrologers including Tan, who founded the Harmony Academy of
Chinese Metaphysics in 1995.

Just like the ox, “investors should be patient and
position for a potential market upturn in 2010,” said Tan, a
former broker at the securities arm of DBS Group Holdings Ltd.
He predicted correctly last year that markets would peak and
investors will suffer losses.

The MSCI Asia Pacific index’s tumble in 2008, which
coincided with the lunar ‘Year of the Rat,’ ended a five-year
bull market for the region’s equities. Stocks plunged as the
credit crisis caused the failure of banks including Bear Stearns
Cos. and Lehman Brothers Holdings Ltd., dragging the world’s
largest economies into recession.

The Chinese lunar calendar ascribes each of the 12 years in
the cycle to an animal, which in turn represents different
personality traits. Besides the rat and the ox, the tiger,
rabbit, dragon, snake, horse, goat, monkey, rooster, dog, and
the pig are also part of the pantheon.

Huge Fluctuations

As well as being patient, those born in the year of the ox
are hardworking, stable and tenacious, Hong Kong-based
astrologer Edwin Ma writes on his Web site. Ma contributes a
daily horoscope column to Hong Kong’s South China Morning Post
newspaper.

In the year of the ox, Tan said investors should avoid U.S.
and European assets, because both regions are at the center of
the credit crisis. Credit-related losses and writedowns at
financial institutions worldwide have swelled to more than $1
trillion. U.S. and European companies account for 97 percent of
that total, data compiled by Bloomberg show.

Tan Khoon Yong, an astrologer who established consulting
firm Way OnNet Group, agrees on the need for caution, given the
stock markets’ performance in the previous ‘Year of the Ox’ in
1997, which coincided with the Asian financial crisis. The MSCI
Asia Pacific Index plunged 28 percent that year.

“Chances of boosting one’s wealth in the ‘year of the ox’
are slim as the fluctuations brought about by the ox are huge
and fast,” Tan said. He recommends holding shares in marine
transport, fishery, technology, energy, hotel, media, lottery
and food and beverage companies.

Last In, First Out

One support for Asian equities may come from investors
favoring the region because it is relatively sheltered from the
credit turmoil, Tony Tan said. While he bases advice on a mix of
Chinese philosophy and astronomy dating back more than 3,000
years, some stock analysts do echo his sentiments.

“The news flow will still be negative but Asia will be
resilient,” Timothy Wong, head of research at DBS Group, said.
“Asia was the last into this crisis and it will be the first
out of this crisis.”

The MSCI Asia Pacific’s 5.6 percent drop in the past three
months beat the 13 percent drop by its European equivalent and
7.6 percent by the U.S. gauge.

Economies in Asia’s developing countries will grow 7.1
percent this year, outperforming the U.S. and Europe, according
to the International Monetary Fund’s World Economic Outlook
released in November. U.S. will slip 0.7 percent, while Europe
will dip 0.5 percent, IMF said.

China Growth

“You will see the first sign of improvement in Asia
because that is where the ‘wealth star’ is,” Joey Yap, founder
of the Academy of Chinese Metaphysics in Kuala Lumpur, said.
“The one country that will still do well once the dust settles
is going to be China.”

China’s economic growth slowed to 9 percent last year from
13 percent in 2007 as the global economic recession crimped
export demand. The IMF forecasts China will grow 8.5 percent
this year.

Still, Yap cautions investors as the “year of the ox”
coincides with the “year of the earth,” symbolizing more
turmoil ahead. Only a few industries will do well this year,
such as healthcare, education and plantations, he said.

“Earth is a non-moving element, you need to clear the dirt
first before you could get things moving,” said Yap. “The
overall dominant theme of the year is deterioration, decay and
stagnation.”