If Feng Shui experts are to be believed, the year 2007 is about "fire sitting on water" and this conflict of vital elements is not a healthy sign for both markets and mankind.

Feng Shui is an ancient Chinese knowledge of geomancy, or natural energies. Feng Shui believes that the positioning and physical characteristics of a home affect the fortunes of the owner. The word fengshui which is normally pronounced as 'Foong' means 'Wind' and 'Shui' is pronounced as 'Shway' and means 'Water'.

According to Raymond Lo, a Feng Shui practioner the conflict of fire and water elements would a not so peaceful start to the early part of the next year.

Years ending with the number seven have a track record of stock market disaster, Lo warns, referring to the 1987 Wall Street crash and the Asian financial crisis that struck a decade later.

"You have to be very careful, the worst could be October ... but it won't be as bad as 1997," he said.

On the political front, Lo expects strife in the Western world, but few flashpoints in Asia.