Year of the Golden Rooster

The Straits Times today has a look at what the upcoming Year of the Golden Rooster has in store for investors.

Investment house CLSA...is convinced...that most Asian stock markets will reach "multi-year highs" in the second half of the year, although feathers will fly in the first six months... "Patience will pay off and investors should remain interested in Asian equities, even if the ride is somewhat choppy in the early part of the year," it says... "Don't be too greedy. The Rooster can jump but does not fly. Take profit before an expected tumble around the middle of the year. Bottom line, though, the Rooster crow heralds the third year of gains for equities."

With the "fire element" dominating during the early part of the Rooster year, CLSA expects rich pickings in the technology, electronic gadgetry, telecommunications and utilities sectors... [T]he oil sector will fare well, with prices averaging well above last year's levels, even though they would have come off the record levels reached in the Year of the Green Monkey.

... "2005 is not a year for the adventure-seeker of day-traders," says Mr Ong Seng Yeow, executive director of Kim Eng Research. He advises investors to buy only high-quality stocks with a sound business model and consistent earnings growth. What may spook market sentiment is the slower economic growth outlook, he adds. Mr Ong also does not expect a post-Chinese New Year rally.

I also discuss the investment outlook in the Year of the Rooster in "Will investors turn chicken in Year of the Rooster?".