Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
NVIDIA THE KING OF THE METAVERSE! - 10th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
MATTERPORT (MTTR) - DIGITIZING THE REAL WORLD - METAVERSE INVESTING 2022 - 7th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
METAVERSE - NEW LIFE FOR SONY AGEING GAMING GIANT? - 6th Jan 2022
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Will the Year of the Snake Bring Another Stock Market Crash?

Stock-Markets / Financial Crash Feb 12, 2013 - 02:26 PM GMT

By: Money_Morning

Stock-Markets

Ben Gersten writes: The Chinese New Year officially began Feb. 10, bringing us the year of the snake - which some investors consider a very bad omen.

Not only does the year of the snake have the worst stock market returns of all zodiac signs, but some of the darkest moments in U.S. history have come during that zodiac year.


Art Cashin, director of floor operations at UBS AG (NYSE: UBS), appeared on CNBC's "Squawk on the Street" Monday and even listed the year of the snake as one reason investors should be cautious about stocks.

And there's plenty of history to back up Cashin's statement.

Tragedy & Loss in the Year of the Snake
Chinese zodiac signs occur on a 12-year cycle, and the Chinese new year usually begins on the second new moon of winter.

Since 1900, the year of the snake is the only zodiac year in which there has been a decline in the S&P 500. It has dropped an average of 3.8% during corresponding Gregorian calendar years.

The year of the snake has always been associated with bad news in the United States, making even the slightest believer in zodiac signs worried about what may be on the horizon this year.

Consider events that have occurred during the year of the snake in the past:

1917: The United States entered World War I in April.
1929: The stock market crashed in October, beginning the Great Depression.
1941: Japan attacked Pearl Harbor in December, prompting the U.S. to enter World War II.
1977: Stocks finished down 17.5% for the year.
2001: The Sept. 11, 2001, terrorist attacks occurred, and the market fell almost 12%.

And since 1917 there have only been two years, 1965 and 1989, in which the S&P 500 was positive during the year of the snake.

Will The Snake Strike in 2013?
Before we entered the year of the snake, some analysts were already cautioning investors to head for the sidelines.

Bears cited the markets' recent surge as evidence that investor confidence was reaching unsafe levels, as well as the uncertainty surrounding the budget deficit and automatic spending cuts as reasons investors should be careful.

While now is certainly a time to be conscious of the new highs and uncharted territory markets are entering, it's not a time to completely cash out - whatever the zodiac year, said Money Morning Chief Investment Strategist Keith-Fitz Gerald.

"A lot of people are advocating that you should run to the hills because of all-time highs and having 500 days with no correction - so what," Fitz-Gerald said. "History shows you that staying in the markets with the appropriate structures and safeguards are the path to higher returns."

Fitz-Gerald, who was actually born in the year of the snake, promotes safeguards such as trailing stops, special inverse funds and allocation models like his 50-40-10 diversification philosophy.

Compared with traditional diversification models made up of 60% stocks and 40% bonds, Fitz-Gerald's model is composed of 50% of what he calls "base-builders," 40% "global growth and income positions," and 10% "rocket riders."

That strategy is focused on a group of core economic realities - equities, interest-rate instruments, income production, commodities and systemic credit. This focus makes the overall portfolio less susceptible to economic downturns because the risk is much more evenly distributed.

Further, because Fitz-Gerald's method requires constant rebalancing of risk, investors can easily shift with varying market phases - growth, contraction, inflation and even sentiment-driven events - all without placing significant portions of their capital at risk.

"So while Art Cashin or whoever else is on the sidelines, we will be prepared to profit no matter which way the market moves," Fitz-Gerald said.

To learn more about Keith's 50-40-10 strategy and get a free copy of Peter Schiff's new book check out the Money Map Report.

Source :http://moneymorning.com/2013/02/11/state-of-the-union-speech-to-disguise-true-obama-agenda/

Money Morning/The Money Map Report

©2013 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in