A visitor takes pictures in front of a picket dragon themed sculpture exhibited to have fun the upcoming Lunar Latest 12 months contained in the flower dome at Gardens by the Bay in Singapore on February 1, 2024.
Roslan Rahman | Afp | Getty Images
Tens of millions of Chinese around the globe are celebrating the Lunar Latest 12 months, ringing within the 12 months of the Dragon which is usually seen as auspicious and prosperous within the Chinese Zodiac.
A latest 12 months also brings different fortunes, some Chinese imagine, with many turning to seek the advice of “fengshui” masters to find out what’s to come back.
Fengshui, which is literally translated as “wind-water” in Mandarin, is an ancient Chinese practice which seeks to keep up a balance between humans and their environment. The five key elements — wood, fire, earth, metal, and water — are believed to be fundamental in bringing about harmony and a few are turning to the traditional art to predict the long run of economic activity.
In Maybank Investment’s fengshui report for 2024, its head of research Thilan Wickramasinghe, together with fengshui master Ken Koh, take a take a look at which sectors will outperform and which is able to face headwinds within the 12 months of the Dragon.
‘Wood dragon’
2024 is the 12 months of the wood dragon and shall be “unique,” in response to the report. It is going to be characterised by all “yang” energies, that are symbolic of masculine, rash, and far-reaching decisions.
The brand new 12 months also signifies the beginning of a latest 20-year fengshui cycle, by which the hearth element shall be dominant. This may favor industries that fall under the hearth element, resembling technology, artificial intelligence, energy, and medicine.
Fire, in response to Koh, is an emblem of economic activity, confidence and optimism.
While the worldwide economy is prone to be moderate in the primary half of the 12 months, businesses in fire element sectors resembling technology, medicine, entertainment and travel will likely do well from the beginning of the 12 months. Maybank does also indicate the insurance sector shall be a “star performer” this 12 months.
“Nonetheless, from June 2024, interest will put the shine back into business sentiments. Because of this, the stock market and equities will see a wave of hope and confidence, resulting in mergers, acquisitions and initial public offers.”
Nonetheless, they warn that for industries under the hearth element, the primary 12 months right into a latest period of energies “at all times means changes and painful transitions.” As such, latest players are expected to enter, while others will fall out of the hearth element businesses throughout the 12 months.
Earth, metal and fire
Sectors under the earth element can even profit from the dominant fire element, Maybank said, identifying sector winners as waste management, real estate, data warehousing and concrete farming.
“Despite rising rates of interest and inflationary costs, the dominant Earth industries have shown resilience and proceed to interrupt latest grounds,” the Maybank report said.
In accordance with Maybank, with the promise of easing rates of interest, lower inflation and good fiscal management in 2024, the support for earth industries, especially property, will proceed to rise.
The rise of fireplace energies in the following 20 years can even provide support for earth industries to evolve into sustainable businesses, the report said, and these businesses will contribute to society via the usage of technology and artificial intelligence.
Most notably, in industries under the metal element — resembling banking, engineering, mining and automotive — the wood element shall be distinguished and can bring prosperity to the metal industries.
“Those that are well informed and courageous shall be favored by fortune. The wealth potential shall be revealed in July and can peak in November 2024,” the report stated.
Maybank said this 12 months presents an incredible investment opportunity for individuals who are ready to select up fair values within the metal industries, adding that the primary half of the 12 months provides one of the best opportunities. Nonetheless, investments can take as much as five years to be fully realized.
Water and wood sectors struggle
While sectors within the earth, metal and fire elements flourish, some industries under the water and wood elements could face challenges within the 12 months of the Dragon.
2024 may bring challenges for businesses under the water element, but they may still remain profitable as they’ve the flexibility to adapt to different conditions, the Maybank report said.
Notably, the report identified that the shipping sector will face some difficulties resulting from problematic shipping lanes.
Other businesses under the water element — resembling airlines, cruise operators, accommodation providers, and theme parks — can even face challenges resulting from changing consumer demands, but are still expected to thrive all year long.
Individually, businesses resembling marine fisheries and aquaculture farming will see a rise in productivity and production to satisfy worldwide demand, which is able to add to their bottom line.
Finally, wood element industries are expected to struggle in 2024, resulting from the strong influence of the hearth, earth and metal elements. But some vibrant spots still exist — and among the sector winners include education, fund management, and family offices.
In contrast with the positive forecast for the opposite industries, “wood industries will face difficulties within the second half of the 12 months, and those that are searching for prospects should have the mandatory resources to succeed in their goals,” in response to the report.
“This may end in a variety of work, competition, and resource drain,” the report added. As such, businesses within the wood industry should give attention to things like sharing experiences, knowledge transparency, and delivering quick results.