Riding the Dragon: 2012 predictions from Chinese masters

Riding the Dragon: 2012 predictions from Chinese masters

 Want to know what's in store for 2012? Who will win the US election? Will the eurozone implode? China's feng shui masters tackle the big issues with their predictions for the Year of the Dragon.

As Chinese communities around the world prepare to ring in the new year tomorrow, astrologers and geomancers are predicting the dragon will bring natural disasters and financial volatility, especially to crisis-hit Europe.

"The world economy will be unstable in the Year of the Dragon, because the economies in Europe and the US are still suffering from the effects of the recession," Hong Kong feng shui master Anthony Cheng says.

Celebrity astrologer Peter So says the United States will provide some good news late in the year, but his charts for Europe make grim reading.

"Europe will not recover so soon -- it is expected to suffer at least until 2014. But what I can say is this, a recovery for the US economy is possible in 2013," he says.

If you're prepared to ride the dragon and invest in 2012, Russia and China could be your best bets. The two emerging markets will be the best performers in a volatile year, says Cheng.

But be prepared for surprises, especially out of China where the Communist Party will hold its 18th Congress to select a new generation of leaders.

"In the second half of the year, a scandalous corruption case will be exposed in China," warns Cheng, refusing to elaborate about who will be implicated.

"I can also predict that in Hong Kong and in mainland China, a number of high-ranking officials will be forced to step down. Some may be thrown behind bars, or even pass away."

Many Chinese take such predictions seriously and adjust their lives accordingly. Feng shui, the ancient study of the forces of chi, or life energy, is a daily part of life in the Chinese world.

One of Hong Kong's largest brokerages, CLSA, releases a Feng Shui Index every year, offering its "tongue-in-cheek" predictions for global markets and world affairs.

Lest anyone takes it seriously, CLSA admits that feng shui's "original purpose was to locate auspicious burial spots, not call the twists and turns of the equity markets or individual sectors".