THURSDAY is Li Chun — the first day of Spring on the Chinese calendar. If you believe the geomancers, how the day pans out will determine your fortune for the rest of the year.
"As goes Spring, so goes the year" is the Chinese equivalent of the much-quoted saying about January's trading patterns affecting the rest of the year’s fortune on the stock market.
Incidentally, Li Chun this year comes two days after Groundhog Day — a festival celebrated in North America when groundhogs emerge from their burrows and signal that spring is at hand.
After a long and harsh winter, it is natural for people to welcome the warmth and hopes which springs brings with it.
On Wednesday, regional stock markets broke out into a trot — and reversed a 10-day loss by making their biggest one-day jump in prices in over a month.
For dealers who are weary of the two-week correction on the stock market, it brings welcome relief and fresh hope of a solid trading year ahead. Spring, as they say, is in the air.
So while prices are in correction mode on Thursday, I am hopeful that the exuberance is not about to evaporate.
Still, it is not surprising to find some investors worried about the upcoming Tiger Year, given the financial upheavals which have occurred during previous Tiger years in 1986 and 1998.
CLSA Securities pointed out in its tongue-in-cheek Fengshui Index report on Wednesday that the “erratic golden Tiger takes charge” from Thursday — Li Chun — since it is the first day of Spring.
As the foreign brokerage quite cheekily acknowledges, its purpose in putting out the report is to cheer up clients back in the dark dismal days a year ago, when the global financial system came close to collapse.
"After all, we figured that even if investors no longer put any stock in fundamentals, they might still enjoy a bit of fun."
So what does CLSA thinks of the Golden Tiger ?
Tiger years are typically marked by dramatic changes and even upheavals.
So with its guide, it hopes that as with any good roller-coaster, there is 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.
"Tiger years are not for the timid. However, for those with the courage of their convictions, there's plenty of money to be made from fortune's twists and turns — and we are expecting plenty of those this year," it said.
Having a tranquil frame of mind is probably the best investment strategy to adopt. Any time, the going turns rocky, just remember: This too shall pass.
Perhaps the best advice CLSA offers to investors is the old Chinese saying which goes roughly like this: Once on a tiger's back, it is hard to get off. But if you hang on, it is certainly the safest place to be.
Certainly looking back over the years, I noticed that I made some of my best stock purchases during a Tiger year and I have kept them until now.
Like CLSA, I believe that this year will be very much like previous Tiger years — a great time for stock pickers eyeing a good bargain for their long-term investments.