In mid-February, with the start of the Chinese New Year, millions of investors will celebrate the Year of The Fire Horse. The Chinese Zodiac calendar has historically exerted more of an effect on Asian markets than on those of the US. That said, Asian investors exert subtle influences on US market outcomes, though offshore investors participate largely indirectly, through use of ETFs and indexes.
As compared to the United States, Asian retail investors represent a significant portion of total investors in the stock and bond markets. For instance, CNBC cited statistics in September 2025 stating that retail investors in China account for 90 percent of daily trading. By comparison, retail investors in the USA represent about 20% of daily volume. Offshore Asian investors therefore can indirectly influence US markets through their sheer numbers, if not direct participation, using index funds and US market- linked ETFs.
The Year of the Horse in the Chinese Zodiac is said to bring new opportunities, as well as risks. Just as the horse is known for fast gallops across the western plains, the animal can also introduce uncertainty through unplanned, impetuous escapades. The question will be whether uncertainty will undermine any outperformance.
Analysts at BNP Paribas, a global investment bank, believes that Asian investors will influence global markets through the volume of their trading activity, and because of policy changes at a governmental level favoring sustained AI innovation. Currently these investors are putting money into innovation driven by AI and higher value manufacturing. Government policy is favoring continued investment in technologies potentially aiding Asian self-reliance, rather than continued dependence on Western innovation and technologies.
Acolytes of the Chinese Zodiac will find additional insights potentially by reading more about how their own birth signs (time of day, day, and year) align with the overarching meta trends of the Chinese Zodiac. For an academic analysis of the effect of the Chinese Zodiac on behavior of Asian investors, see an excellent article published in the Asian Journal of Finance and Accounting, author Alex Meisami, in June 2013. Click for link here.
To discuss how offshore investment may influence outlooks for US-based stocks and funds, give us a call. We’re happy to help.
