Dragon battered by rainstorm in 2012

The coming Chinese New Year-2012 is the ‘Year of the Dragon’, a very auspicious animal according to Chinese beliefs. People are better informed that the Chinese animal zodiac signs are further categorize by the 5 elements: Water, Fire, Wood, Earth and Metal. The coming year of the dragon is a ‘Water Dragon’ has become a general knowledge.

The water dragon may sound auspicious and promising. Many equate water to wealth and are looking forward for a better year. Does that mean that the dragon of the coming year is going to bring us abundant wealth, as claimed by many newcomers?

Master Ong of I-Ching geomancy Centre thinks otherwise and warns everyone to start saving for rainy day! He reveals a higher knowledge from the Chinese Imperial Classic that the coming year dragon is one that ‘travels under the rainstorm ’. It denotes ‘ceaseless movements of our limbs’ – signifying a constant struggle and hardship to come.

Furthermore, the dominant and powerful predictive tool of the Chinese – the I-Ching indicates that there is an ‘uprising thunderstorm’ also signifies much troubles and conflicts ahead, under the hexagram known as ‘The Turning Point’. We can expect results for ongoing uncertainties and outcomes to prevail in the coming year of the dragon, but unfortunately only after a ‘Rainstorm Battered Bath’.

Incidentally, a great deal of crisis had taken place last year, yet there is no sign of recovery. Looking forward, there isn’t any economy stimulus in the pipeline. On the contrary, perhaps there is a bigger downfall waiting to happen before the ‘Turning Point’ as indicated by the I-Ching.  

Master Ong explains that an early ‘turn around’ is a good ‘break through’ and a late ‘turn around’ is as bad as a ‘break down’.  If the turning point procrastinates and takes place during later part of the year, then uncertainties will continue to hover and linger throughout the year, causing harm to economy growth. On the other hand if the ‘break through’ happen early, it can disperse uncertainties and pave route for recovery. However, it will take few more years to recover and will spread across the whole calendar year of 2012. Thus, Master Ong cautions everyone to be vigilant and take preventive measures.

Other Chinese predicting instruments also point to possible major earth quake that followed by serious flood or drought. The Chinese almanac projected that farmers can only reap 60% of what they sow which may spiral inflation, is another bad sign for economy.

‘What about the stock market? Will there be a serious crash and when?’

Last year, I successfully sent warnings to investors to be cautious and lookout for indicators that point to serious breakdown that may affect world economy. Singapore stock index had fallen 17% from 3,200 to a low of 2,650 points. Risk investors that did not take heed of last year’s advice and invested in the European products with the belief that they have a potential for wider growth compared to Asian products are now regretting.

The name of the hexagram ‘Turning Point’ of the I-Ching suggests buying opportunities however we have to wait for the uprising thunderstorm to clear first. We also expect more global conflicts in the coming year according to fengshui analysis. Timing and political changes are crucial elements for good decision making during the coming Chinese New Year.

The European sovereign debt problem is one existing storm. The behavior and performance of the new ruler of North Korea and the Iranian with their new nuclear power are two notable uprising storms. Just to remind readers that major power houses; Taiwanese had just chosen their state leader, America and perhaps Malaysia are all holding their election this year. Any major change in political landscape will inevitably influence the economy by large. Cash is King at this moment, but target your cash bullets and use them sparingly.   

As regards to when? For the experienced investors, volatility is expected throughout the year but the first quarter is stage of strain and last quarter is period of hostility.    

‘Gold and property prices are all time high, will they sustain? And will property prices collapse between 30 to 50 percent as many had fears?’

Now, we know that any slowdown in global economy will dampen the demand in crude oils and industrial commodities consumption, however gold and property are exception, because they are component of ‘asset securities’ against currency devaluation. With the high global inflation rate and couple with high currencies devaluation, gold prices will likely to hold firm.

It is too generic to speak of global property prices but in Singapore as I mentioned before, Singapore is highly regarded as a safe haven for global investors. Many feared that with the recent new government policies of increasing 10 percent tax duties for foreign buyers will bring a serious collapse in property prices. In comparison, 10 percent is soft compare to China that prevents foreign buyers totally. The reason for the Chinese is to prevent a bubble burst and I assume that Singapore government does not want the ‘busting gas’ to blow into our country. As a matter of fact, foreign buyers of different nationalities are shopping here with loaded cash. A slowdown is good preventive measure as the Chinese saying goes: ‘Interval rest is good and necessary for distant travel.’ Against all odds, I am more optimistic in local property price compared to others.