The CLSA feng shui chart has garnered a wide following thanks to its uncanny predictions. Just Have a look at last year's chart prediction ... it was pretty close.
Stock market investors are set to ride high in the year of the galloping "wooden horse" as the Hang Seng Index soars to 28,105, brokerage CLSA said in its yearly tongue-in-check forecast for the coming lunar new year.
The HSI closed at 23,082 yesterday. So, according to CLSA's Feng Shui Index 2014 forecast, it will climb more than 5,000 points in a little more than 11 months.
"Horses are brave and honest. They bring energy and drive to the market," said Emily Lam Tim-yi, an institutional saleswoman at CLSA.
The brokerage said the Year of the Horse will be "full of fire" that "could take up the lead and drive up market sentiment in the first half ... with the exception of April when the horse will lack fire."
After peaking in July, a lack of fire will precipitate a dip in the local equity market in August and September and it will stay volatile until the end of the year, said CLSA analyst Mariana Kou Chun-yin.
According to the Feng Shui Index 2014 forecast, sectors related to wood and fire will outperform.
"They include retail, media, soft commodities, internet and tech and oil and gas industries," said Lam. "But stay away from the metal and earth elements including the autos, banking, building and property and resources sectors."
She added: "Gaming and hotel stocks, which have jumped significantly this year, will shed their luster a bit."
Coincidentally, Casino operator Galaxy Entertainment Group (0027) - the best performing blue chip last year - drop
ped 5.5 percent yesterday after a JPMorgan Chase recommended investors trim their exposure to Macau gaming companies.
CLSA also warned investors not to venture too far into property stocks.
"We should be ready for the elbow of evil this year," warned Jackson Hui Lap-yin, research associate of the property team.
CLSA earlier forecast local home prices will drop 10 percent this year and 5 percent next year.
Hui said an "evil shroud" will cover the northwestern part of the New Territories and eastern part of Hong Kong island.
And the outlook for property in Yuen Long and Long Ping is "filled with horror" as more land supplies are expected there.
Quarry Bay, Tai Koo Shing, Siu Sai Wan, Sheung Wan and Kennedy Town - where home prices have surged in the past few years - may see them fall.
And properties in Lung Kwu Tan, Tuen Mun, Pok Fu Lam, Mount Davis and Aberdeen will offer lukewarm return.
But last year's forecasts for the soon-to-be-concluded Year of the Snake have been somewhat off the mark.
CLSA said last year that it expected the HSI to rise to as high as 26,000 points. But the index rose as high as 24,111 points.
But Kou took the discrepancies in her stride, saying the brokerage has been issuing the Feng Shui Index forecasts for more than 20 years and it is inevitable that in some years, they will be slightly off.
The 2014 chart IS SURPRISINGLY POSITIVE considering the many headwinds that experts are predicting for 2014. Naturally we all do wish that the wind and water forces will be greater than the feeble minds of mere mortals.