Feng Shui and the Stock Market — Why the Hell Not?

2010-02-13

The Year of the Tiger is set to deliver gains to investors, but also volatility and it may be a boon for precious metals, according to feng shui analysis by CLSA. The brokerage firm is careful to characterize its report as “tongue-in-cheek,” but the fact is that many investors and business people in China, Hong Kong and Taiwan take feng shui and Chinese astrology very seriously. WSJ

Don't expect my usual rant against religion/spirituality. No, in this case, I am all in favor of using feng shui principles to guide one's investment choices.

Well, perhaps that's slightly incorrect. Let's say that I consider feng shui as a guide to be just as accurate and scientific as 95% of so-called technical analysis (also known as Kabbalah or numerology) cooked up by autistic young math prodigies at investment banks, and is undoubtedly safer than entrusting one's hard-earned discretionary income to a Wall Street wizard such as Bernie Madoff.

All of these age-old techniques are certainly easier than doing basic research on a particular company, industry, or market. So, feng shui? Have at it.

That being said, I do not expect that the feng shui report noted above is going to be taken that seriously. No matter the spiritual outlook of most Chinese investors, everyone knows that success in the market is the sole function of who you know (and what they know, preferably before the market does), and not a gimmicky investment technique.

Insider trading will outperform feng shui every time.

Tags: China Business & Economy