Is the year of the Snake bullish for the ASX 200?

Chinese New Year commences on Wednesday, 29 January, kicking off a 15-day celebration that marks the beginning of the Lunar calendar year and ushers in the Year of the Snake.

The Chinese Zodiac consists of 12 animal signs: Rat, Ox, Tiger, Rabbit, Dragon, Snake, Horse, Goat, Monkey, Rooster, Dog, and Pig. Each sign is named after an animal, and each animal has its own unique traits and characteristics.

The Year of the Snake is a symbol of wisdom, strategy, and transformation in the Chinese zodiac. Known for its careful, calculated movements, the snake embodies patience and the ability to adapt to change – qualities that resonate strongly given the ongoing geopolitical climate and Trump administration.

While we would never suggest making investment decisions based on zodiac signs, it’s interesting to observe how the market performs in each zodiac year.

Since the Chinese New Year typically starts around late January and early February, we looked at the 12-month return of the S&P/ASX 200 Index starting at the end of January, dating back to 1980.

The Year of the Snake is Here

The Year of the Snake is considered one of the weaker-performing zodiac years, but it stands out as one of only three to boast a 100% positive rate.

Source: Market Index | Returns are based on February through February returns for the S&P/ASX 200 Index

Here’s how all twelve zodiac signs have performed since 1980. Interestingly, the Year of the Pig and the Year of the Ox have delivered some of the strongest returns, but you’ll have to wait until 2031 and 2033 to see them again.

That said, some of the top-performing zodiac years have been boosted by outsized market rallies in the 80s and 90s.

The February-to-February return for 1993 (Rooster) was 51.2%, 41.5% in 1983 (Pig), and 38.7% in 1985 (Ox). In contrast, the performance of the modern-day Pig has been much more subdued, with a 2.1% decline in 2007 and a 19.7% gain in 2019 — compared to the 41.5% surge in 1983 and a 24.9% jump in 1995.

Source: Market Index | Returns are based on February through February returns for the S&P/ASX 200 Index

Lastly, it's amusing that some of the most commonly consumed livestock – pork, beef and chicken – have generated some of the best returns.