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Burrowing for Wealth in the Year of Rabbit

Perhaps it's time to whip the bunny out of the hat. After the volatility that marked the year of the Golden Tiger in 2010, the incoming Metal Rabbit may be what's needed bring some calm back to the markets.

Attentive rabbit
Nathan Blaney | Photodisc | Getty Images
Attentive rabbit

The Rabbit is said to be the luckiest sign in Chinese astrology; and according to CLSA's annual Feng Shui Index, the new Lunar Year will bring plenty of luck and material gains for investors.

The report combines the traditional Chinese practice of predicting fortunes through dates — or feng shui — and current market trends to see what 2011 holds for equities, commodities and property.

"The year of the Metal Rabbit provides great opportunity for investors to reap the rewards of astute investing," said the report. "But they should be forewarned: those who chase two rabbits will not catch one."

That means staying focused in whatever you invest in, as market movements will remain choppy this year, though less than what was experienced the year before, the report says.

And the best way to get richer this year, according to CLSA, is to accumulate indirect wealth, in the form of dividends paid from stocks.

In terms of asset classes, metals will do well this year, especially gold, said CLSA. The yellow metal could very well break above $2,000 per ounce; while silver and rare metals like gadolinium will also fare well.

If you like exposure to equity, CLSA recommends buying stocks in the financial, gaming, resource and transport sectors.

Still, it's looking to be a volatile year for stocks. CLSA says the year will start slow, with rallies expected in the months of July, August, October and November. But investors should brace for market corrections in September and October.

Remember to mark 4 August on your calendar — according to the CLSA's Feng Shui Index, this will be a particularly profitable day.

So which animal signs are expected to profit this year? Those born under the Cow, Sheep, Dog and Pig signs.

But it will be a bumpy ride for Tigers and Roosters.

That said, CLSA maintains that the feng shui predictions are just, well, predictions. Investors will still need to do their homework and apply good judgement in investing.

Do you think the year of Rabbit will bring luck to markets? Take our poll and tell us!

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