Stock recommendation from the stars

As you guess know, I bought this book called shares a few days ago.
I've been reading this book like those Ah Peh reading the horse racing book.

One of the articles was regarding a financial forecast for the month of January.
Er...if you were wondering how the forecast is made, it is done using tradition Taoism methods, by analysing the elements and all those stuff.
Interesting to note that the author is a post-graduate and it is even more interesting that a magazine like shares, use such an unorthodox method to analyse the market. Really goes to show that it is an Ah Peh magazine.

Its not that I'm into any of these supersitious mambo jambo, but I guess you guys are really interested to know what stocks are expected to do well in this month.

"The Yin Fire Ox will bring potential strength to the Earth element".

note that the Ox has a lot of yin, meaning that it is a female,so its a cow.
The cow is a fire cow, means it produces hot milk.

okok, I should stop joking.
Their recommendation on industries that will do well are industries are are related to Fire and Earth.

Fire industries: Equity, Hospitality, Service oritented, media, entertainment, beauty, energy, etc
(why are some of these industries fire industries? I understand energy sector has much to do with fire. But beauty? maybe Civil defense should be fire industries since they only have jobs when there is a fire.)

Earth industries: Property, coal mines, insurance, health care, banking, etc
(at least this makes more sense then fire industries.)

As much as I do not believe in all these superstitious forecast, I have to agree that her recommendations are pretty good.

Most recommended stocks fall into this category.
Fire industries
Energy(oil and gas): Erza holdings, Mermaid Maritime
Hospitality: CDL Hospitality Trust
Media: SPH

Earth industries
Property: SC Global, Ho Bee Investment
Banking: Damn, they are all so stable

I was thinking she probably tune her speculation in line with recent stock recommendation.

I was thinking about it for a while. Just a random thought. I got a bad hunch.
All these forecast and speculation is based on the fact that in the middle of 2010, the market will rally due to the completion of the integrated resorts. This is especially so for the property sector.

Most of the recommended property stocks are companies which are building properties on sentosa, more commonly known as Sentosa Cove(the damn piece on the MacDonalds Monopoly promotion which no one seems to get).
Most of these properties companies are doing rather well. They have decent occupancy rates.
However, having decent occupancy does not secure anything.
If people are unable to pay up for those properties, they have to default on the property and then there will be issues.

People who purchase property on sentosa cove is likely to buy the property as investor.
Likelihood is that they aim to flip it when the price is high. Likely, the property owner is looking for a sucker to purchase the property at a higher price. This "next sucker cycle" will continue until property prices are too high and the bubble burst. What if at some point the owner defaults the payment or at some point, someone declares that the property is not worth its price. Then we will have our own little "sub-prime crisis".