Should you trade and do business in the Asian stock market during Asia’s ghost months?
It is a question that many expatriates and foreign investors and businessmen who have business interests in the region have to contend with during the months of July and August, the aforementioned “ghost months.” Trading practically comes to a halt during these times and locals, in particular, are wary of establishing or opening a new enterprise, or parting with their hard-earned money to invest in nascent projects.
As CNBC notes, stocks in Asia often take a beating during August and have been doing so since 1987. And while the seeming business slowdown is pervasive throughout the continent, the Coin Telegraph notes that it is particularly and intensely observed in countries like China, Japan, and Singapore.
The economic standstill is an aftermath of long-established and deep-seated traditions in China which, over the centuries, had spread to other parts of Asia. Chinese culture has maintained that during the seventh month of the calendar year, the gates of the dead open, freeing the spirits of the departed to walk the earth and interact for a time with their loved ones. Buddhists and Taoists in particular call this time the Festival of the Hungry Ghost. Practitioners and devotees are enjoined to spend this time to honor the memory of their dead relatives, family members, and friends through ritual, prayer, and other community gatherings.
Doing business or any other commercial transactions would be considered inappropriate. The ghosts especially may feel dishonored — and make their displeasure known by bringing about ill-fated business outcomes. In short, invest during this time, and your stocks have a high probability of falling. Open a store, and the ghosts just might scare customers off.
The Philippine Daily Inquirer notes that honoring ghost month can sometimes extend to social activities. Some Chinese couples do not make wedding plans or move into a new house during the month of August.
Ghost Month officially ends on September 19. With it, trading, investments, and any business movement in Asia return to normal.
The 4 percent 10-year note yield will be a floor not a ceiling
Tips for expats to set up businesses in foreign countries
The landscape for rental cars is changing — here’s why
Is the recession upon us? Think global synchronized bond collapse
What is hardware inventory software?
Cannabis acceptance grows as hemp industry leader PotNetwork Holding breaks CBD sales records
This fast-growing organic products stock already has space on Whole Foods’ shelves
Why Vapor Group Inc. might be the breakout penny stock you’ve been looking for in 2018
The CBD industry is enjoying a boost from the lifestyle sector
When you should consult your financial advisor
Promoting women’s football in Malta by UEFA projects
Euro NCAP marks its 20th anniversary with two crash tests
European Parliament’s International Trade Committee backs CETA
The American Heart Association has released four new PSAs
PwC presents 20th global CEO survey results in Switzerland
Crypto3 days ago
Could Global Blockchain Technologies change the way we invest in cryptocurrency?
Featured4 days ago
This hemp market player’s growth is about to go into overdrive
Crypto4 days ago
One of America’s oldest gold mines enters the crypto-century
Featured5 days ago
CBD stocks emerge strong in the growing cannabis industry, marijuana legalization
Featured4 days ago
The gig economy has matured — when will the business world catch up?
Business3 days ago
Why is it becoming harder for millennials to be homeowners?
Agriculture3 days ago
The benefits of supporting sustainable palm oil
Entrepreneurship1 day ago
Why being a silver entrepreneur makes a good decision post-retirement