Stock selection based on five phases

Hitching a horse and cart to the right element

During the Han dynasty, the great conqueror Emperor Wu sought the counsel of seven different divination experts in his search for a consort. Five elements theory ultimately prevailed, becoming so integral to the Chinese phenomenological universe that little falls outside its rubric. The directions and seasons are well understood, and some readers will know which body parts and physical ailments are associated with particular elements. Certain patterns and associations are also significant. For instance, the following concepts are traditionally associated with the southern direction: fowl, scorching, laughing and speech. This begs the question - when the south is well-aspected, should one laugh while barbecuing a fowl on a southern-facing balcony? Here, we advise you to check your local residential laws before proceeding. Nonetheless, some parents today still consider the bazi birth chart and the five elements when choosing names for their children. If a particular element is missing from the bazi, it may be incorporated into the child’s name to bring the overall chart back into balance.

Metal is the best it has been in a few years, given the useful melting moments that fire will bring. We expect a decent showing, except for summer. Machinery and construction steel should perform well. Look for innovation in financial products, and while typically no one plugs armaments or lawyers, the stars and elements appear to be providing a good year for both.

Bhavtosh Vajpayee
Technology
Basudeb Banerjee
Autos
Horace Tse
Battery

Though the bazi is loaded with fire, the chart itself is not strong. Nonetheless, with the addition of wood this year, all fires are stoked, and we expect fire-related industries to perform well until the final two months, when excessive water seeps in. We see support for energy producers and communications industries. Other hot horses include jewellery, spectacles and lighting, all of which should experience robust demand.

Oliver Matthew
Internet
Elinor Leung
Internet
James Druce
Thematic

Not all that far behind metal is earth. Fire supports earth in the bazi, but it still does not overcome the other elements working against it. Only a single month in the autumn sees earth unquestionably strong. We see little support for real estate but better prospects for infrastructure construction materials, such as sand and cement. Later in the year should be good for hospitality and all sorts of gemstones.

Aditya Soman
Consumer
Yuna Choi
F&B
Nikhil Gupta
Thematic

Strongly supported in spring and summer, wood will enjoy the best year. The dip in autumn is real, but expect a recovery during winter as water, which supports wood, floods in. A strong harvest late in the year may lead to agricultural growth, and the start of the academic year also appears to have support in the charts. Other more direct forms of wooden horses such as furniture, plants and medicines will also benefit.

Jay Defibaugh
Thematic
Harry Kim
Healthcare
Sarina Lesmina
Market

Water is the weakest element of the year. While it strengthens in winter and receives a little support from metal early in the year and late in the summer, it is generally weak. We expect shipping to languish in the horse latitudes for much of the year and travel may also be affected. Trade, especially in smaller items such as beverages, toys and even fishing and aquaculture, may barely manage to stay afloat.

Leif Eskesen
Market strategy
Jongmin Shim
Market strategy
Dong Cheol Shin
Shipbuilding

Feng Shui Index 2026 report

Year of the Fire Horse

Sorcerer: Dr James Greenbaum
Sorcerer's apprentice: Susan Zhang
Wand bearer: Orlando Hong
Director/Editor: Yukti Vidyarthi
Translation editor: Melanie Ng
Design/Art: Lizzie Lau; Anna Lai; Elva Lau; Patrina Leung; Jon Berkeley
Web development: Paul Ngan; Timothy Wang
Video production: Luna Deng
Thanks to: Priscilla Man; Ellen Lo; Qi Qi
Producer: Liz Patterson

Launched in 1992 as a Chinese New Year card, the CLSA Feng Shui Index is a light-hearted outlook for the Hong Kong market and a well-loved firm tradition. Please note that this guide is not a research report.