2010 The Year of the TIGER

Combining the traditional Chinese practice of predicting fortunes through dates, or feng shui, along with current market trends, CLSA recently launched its annual Feng Shui Index report to see what 2010 holds for equities, commodities and property.

Their main message: Expect a year of volatility. So keep your cool.

“Tiger years are typically marked by dramatic changes and even upheaval,” said the report. “As with any good roller-coaster there’s no upside without a bit of downside, but you can survive the ride in much better shape if you see the turns before they come.”

CLSA predicts 2010 to be a year for gold, forecasting the price of the yellow metal to break US$2,000/oz.

Other non-ferrous metals like silver, copper, zinc and aluminum are also in favor this year. But sectors related to the element of “water”, such as shipping and transport are not expected to fare as well.

The Good, The Bad & The Volatile

February and June are seen as good months for investment opportunities, according to the CLSA report. The best month for investing though, is in October, as it marks the return of a sustained drive upwards that will continue into November, December and January.

Volatility is expected in August, with gold, silver and copper set to break upwards.

For Brandon Chua, he sees a lot of aggression in the stock markets this year due to the distinct lack of the water element.

“So with that element missing and with metal representing toughness, decisiveness, we see a lot of aggressive action in the market. There will be a lot of punters in the market.”