Feng Shui and Stock Market 2015 is a sequel to Feng Shui and Stock Market 2014 but unlike the latter, discussion will be limited to the Feng Shui impact on stock markets. With regard to other asset classes, please refer to Feng Shui Investing 2015.
Stock markets started the year 2015 on a bright note. European and Japanese stock markets were buoyed by the quantitative easing by their respective central banks. US stock market continued to make new highs despite concerns of a Fed rate hike in September. Meanwhile, the China stock market was the star performer with Shanghai Index climbing above 5000. Investors can refer to Feng Shui and China Stock Market 2015 for a detailed discussion.
From Feng Shui point of view, this should be an average year for stocks. This year is characterized by the Wood element with 2015 being a Wood Goat year and the annual flying star being Star No 3 which is of wood element. Thus, industries belonging to this element (publishing, education, music, timber, etc) should outperform. Nevertheless, the Goat is of the Earth element and therefore, industries belonging to the Earth element (property, cement, etc) should also perform well. The Metal and Fire elements are subdued this year and therefore industries such as mining, auto, finance, etc (Metal) and energy, petrochemical, F&B, solar, etc (Fire) will have average prospects. The Water element is diminished by the strong Wood and destroyed by Earth, thus industries such as shipping, shipyard, water treatment, etc.
Relative Performance of Major Stock Markets in 2015
In 1H 2015, the U.S. markets continued to register new highs, while the Japanese and Indian stock markets continued its strong performance. Most European stock markets performed well too, until the Greek crisis came along, bringing down these markets. Meanwhile, China stock market was the star performer with the Shanghai Composite Index achieving more than 100% return prior to the recent correction. A full discussion on the China stock market can be found in my blog. Here, the discussion is on the other major stock markets.
At the beginning of the year, most investors were bullish on Europe on the basis on Quantitative Easing (QE) by the European Central Bank (ECB). However, the buoyant sentiment in these stock markets have since been dampened significantly. First, the re-emergence of the Ukraine-Russia conflict since the ceasefire agreement put in place in February has investors worried about the potential spillover from the conflict. Second, the Greek crisis has taken a turn for the worse, with a bailout deal looking increasingly more difficult. My view on the Greek crisis is that a Greece exit from the Eurozone (Grexit) is unlikely even if Greece fails to agree on the bailout terms with the creditors. The stock markets' fallout on Monday following the announcement of a referendum by the Greek Prime Minister, Alexis Tsipras, is an indication that investors will not take kindly on any possibility of a Grexit.
The Greek Crisis 2015
In my Feng Shui and Stock Market Forecast 2014, I mentioned that any break-up of the European blog is highly unlikely as the 2014 flying stars in the Northern Europe symbolizes "temporary union". In 2015, the flyig star combination has turned into an inauspicious 4-8 combination. This combination has the Wood element of Star No 4 destroying the Earth element of Star No 8 and a conflict is inevitable. Interestingly, Star No 4 represents "Eldest daughter" (or Older Woman) while Star No 8 represents "Youngest Son" (or Younger Man) among other symbolism. The heart of the Greek is a dominant Merkel (Older Woman) imposing austerity measures on Alexis Tsipras (Younger Man), justifying the presence of a 4-8 star combination from Feng Shui point of view.
In 2015, the Southern Europe and Middle East regions are influenced the 3-8 star combination. This combination also has Wood destroying Earth characteristics but this combination has a resulting Wood element, further weakening the Earth element in this region. Annual Star No 3 is also a "quarrelsome" star - no wonder the dispute Greece and its creditors are hard to resolve amicably. Its noteworthy that the dispute worsened during the months of May and June when the monthly flying stars are Star No 2 and Star No 1. Both stars form an inauspicious combination with the Annual Star No 3 which symbolizes quarrels and dispute.
Greece is geographically located within the Southern and Southeastern part of European blog. The flying stars in these directions also contain the inauspicious Star No 7 which represents political turmoil among other symbolism. Peace and union is unlikely under these conditions. That leaves the monthly flying stars as possible saviour.
Monthly Stock Market Forecast -2H 2015
The influence of the monthly flying stars on the major stock markets are as follows:
July
The U.S. stock market will be positively influenced by the monthly Star No 1. Star No 1 interacts positively with the annual Star No 4. Moreover, Period Star No 9 interacts with Annual Star No 4 to form Metal. This Metal element also reacts well with the Water element of Star No 1. Overall, this should be a good month for U.S. stocks though the star combination does not symbolize wealth.
It is also important to consider the impact from the Greek crisis on U.S. There are also some favourable star combinations here. In the central region, the monthly flying star is No 9. The Fire element of this star helps to diminish the Wood element of the "quarrelsome" Star No 3. So the Greek crisis will take some relief here.
In the Northern region, the monthly flying star is the inauspicious Star No 5. However, the Earth element of this star will enhance the effects of the auspicious annual Star No 8. There will be some wealth effect but it will also be accompanied by obstacles and misfortune. Overall, the Greek crisis will improve in this month. It is possible that this crisis will be resolved this month albeit temporarily.
If the Greek crisis is resolved, this should be a good month for the U.S. and European stock markets.
The China stock market is, however, likely to underperform this month due to the presence of inauspicious flying Star No 3, which symbolizes loss of wealth. The Japanese stock market is likely to experience underperformance as well.
August
This month should augur well for the U.S. stock market as well. The monthly Star No 9 form an auspicious Metal combination with the annual Star No 4. However, the positive effects are reduced by Fire element of the Period Star No 9. The destruction of Metal by Fire is detrimental to financial wealth.
In Europe, the flying star combination influencing its fortunes are 3-8 and 8-4. Both combinations involve a Wood destroying Earth scenario. If the Greek crisis is not resolved or only temporarily pushed nack in July, this month could see a re-emergence of the same problem.
Elsewhere, China, Japan and possibly South Korea stock markets could have a strong rally/rebound. Star No 2 is an illness star but its Earth element should enhance the Metal element of the annual Star No 6. Some financial wealth will be created. The MERs crisis in South Korea could worsen if this is not contained in July.
September
September is likely to be a better month for the U.S. stock market than August due to the presence of the auspicious Star No 8. This star will clash with the annual Star No 4 and strengthen the Metal element of original Star No 6. Overall, it is slightly positive for U.S. stocks. However, this could be overshadowed by the sinister stars visiting Europe.
In Europe, the Greek crisis, if not resolved in July, could take a turn for the worse as this month sees the inauspicious Star No 7 interacting with annual Star No 3 as well a Star No 3 interacting with annual Star No 8. Both are "troublesome" stars and the combination usually signals loss of wealth, political turmoil, robbery, etc. Perhaps the pending elections in Spain and Portugal in the coming months could cause some nasty media headlines to surface which potentially cause concern for investors.
In China, the 6-1 star combination is favourable and provided global stock markets do not see a massive sell down, the stock market is likely to benefit from the auspicious Feng Shui but its performance might not match that in August.
October
October is month notorious for steep market declines. This year, inauspicious Star No 7 will visit U.S. and interact negatively with the annual Star No 4. This is likely to the most difficult month for the U.S. stock market in 2H2015.
European stock markets are likely to be dragged down by the U.S. stock markets. However, the monthly stars visiting Europe this month are more auspicious - Star No 6 (which clash with annual Star No 3) and Star No 2 (which will enhance annual Star No 8).
The China stock market will underperform this month as the Fire element of visiting monthly Star No 9 destroys the metal element of annual star.
November
This month should be a better month for the U.S. stock markets. Star No 6 will visit U.S. and U.S. stock markets tend to perform well in the presence of this auspicious star.
European stocks are likely to underperform the other stock markets as the visiting stars are Star No 1 interacting with annual Star No 8 and Star No 5 interacting with Star No 3.
China stock markets are likely to attract more investors' interest and enjoy another up leg due to the auspicious Star No 8 enhancing the metal element of annual Star No 6.
December
The final month is inauspicious for the U.S. stock markets as the monthly visiting star is Star No 5. This will clash with the annual Star No 4. As such, U.S. stocks are unlikely to enjoy an uplift.
The fortunes of the European stock markets are mixed. Star No 4 enhances the the adverse effects of of annual Star No 3 but Star No 9 will also enhance the positive effects of annual Star No 8.
