If CLSA's Feng Shui Index is anything to go by, the first half of October is a good time to fill your boots with Hong Kong stocks ahead of a strong market rally throught to year-end. The index, put together in January, indicates the magnitude and direction (good or bad) of mystic forces for the year. So far it has been reasonably accurate - when the index has been positive the Hang Seng Index has improved and when the index has been negative the blue-chip benchmark has been in retreat.
If the relationship holds true, the HSI is poised for its biggest and best rally of the year from late October through to the end of 2000 - the Year of the Dragon. "The future looks brighter as we come to the end of a cycle of bad fortune and move out of trouble in the month's of the pig, rat and bull as the emergence of water in the air introduces growth, signalling the beginning of a good fortune for the investment market," says CLSA.
What's more, 2001 - the Year of the Snake - is also looking good, according to Dio Wong, CLSA's head of Hong Kong research. Wong predicts the HSI will end 2001 at 21,000. The HSI ended last week at 15,648.98.