EXTERNAL REPORTING
Year of Rat May Portend Losses in Asian Stocks, Astrologers Say
2008-02-04 18:21 (New York)
By Chen Shiyin (abridged)
Feb. 5 (Bloomberg) -- Chinese astrologer Tony Tan, a former broker at DBS Securities, made money for his clients
in 2007 by telling them Asian equity markets would turn in "peak performances" in the Year of the Pig.
He's predicting losses in the Year of the Rat, which starts this week.
"Just like a rat, investors will have to be nimble," said Singapore-based Tan, an astrologer since 1995 and
founder of Harmony Academy of Chinese Metaphysics. "It's going to be a highly competitive year."
Chinese astrology, based on a mix of philosophy and astronomy dating back more than 3,000 years, has 12
animals that combine with five elements to define each year, making up a 60-year cycle. This year the Rat, a
"water" creature, combines with the "earth" cycle, another unstable combination according to Tan.
Stock markets are already falling. The MSCI Asia Pacific Index dropped 9 percent in January, its worst
monthly performance since September 2001, after a 12 percent gain last year. Benchmarks in 11 of the region's 14
largest markets including China, Hong Kong and Singapore reached all-time highs in the Year of the Pig. MSCI's
Asian index reached a record on Nov. 1.
Tan expects markets to bottom out in April, a "dangerous" month for stocks because of clashing elements.
Prices may rebound as the Year of the Rat continues, without setting new highs, he said.
"The Year of the Pig was one of optimal strength," Tan said. "We're not going to see a repeat of those
gains."
