Monday, February 7, 2022
“Bulls make money, bears make money, and pigs get slaughtered.” Old Wall Street saying.
The Chinese New Year (often called the Lunar New Year) kicked off on Tuesday, February 1, and with it will begin the Year of the Tiger. Although we would never suggest investing based on the zodiac signs (and there is no talk of Tigers in the quote above) —it is important to note that the Year of the Tiger has historically been quite strong for equities. Again, we’d never suggest to invest on zodiac signs, but it is worth noting that the Year of the Ox has been historically bullish and it did extremely well once again last year.
The LPL Chart of the Day shows how all the 12 Zodiac signs have done historically. Sure enough, the Tiger is near the top, with Goat and Ox also very strong, while the Rooster and Snake are the worst.
“The year of the Tiger is the third of the 12 animal signs of the Chinese zodiac, and the Tiger is considered a symbol of competition, courage, and ambition. Equity returns indeed are quite ambitious during the Tiger, as it is the third best return out of the 12 Zodiac signs,” explained LPL Chief Market Strategist Ryan Detrick.
Given the author is a long suffering Cincinnati Bengals fan, maybe their recent success shouldn’t be all that much of a surprise, given we are in the Year of the Tiger after all. As you can see below, with nearly a 14% average return and more than a 23% median return, the Year of the Tiger has definitely stood tall (hopefully a sign for Joe Burrow and the Bengals next weekend).
We want to stress that no one should invest purely based on the zodiac signs. This relationship is random and the sample size is small. Still, here’s hoping that the Year of the Tiger plays out well for the bulls once again!
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