On Jim Puplava’s Financial Sense News Hour Charles Nenner reiterated his prediction that bonds would top out in the next couple of months, and also provided his outlook for stocks.
Nenner said he got out of stocks the last time the S&P 500 breached 1,400. However, he believes the market will re-test that level, although he isn’t sure it will quite get up there.
Nenner said his cycles of war and peace show serious conflict starting toward the end of 2012 and continuing in 2013. He also sees serious risk of deflation with the economy rolling over again.
The business cycle only lasted three years since it started from such a low point and when it turns down there will be a big problem according to Nenner.
Regarding bonds, Nenner said they were totally out of the Treasury market. He said they bought some TBT which goes in the opposite direction of the TLT. Nenner sees a cycle high for the bond market in the last days of August.
As far as gold goes, Nenner said there was a cycle low coming up in the next couple of weeks so he might look at gold again.
Nenner added that investors should stand aside because these are difficult days to make money. He said cash was an attractive option and for those who need income, small houses that generate rental income could be useful in this regard. However, he doesn’t believe the housing market has bottomed yet, but in 5-7 years it will bounce back. In the meantime rental housing can provide reasonably safe income.
Puplava asked Nenner about his opinion of dividend paying stocks such as consumer staples or utilities stocks. Nenner said dividends can be cut and in the event that his prediction of Dow 5,000 comes to pass, those stocks will do worse than real estate.
The interview continued with Nenner commenting on the idea of laddering corporate bonds for income, his view of commodities including grains and sugar, when it would be a good time to re-enter the gold market, when he foresees a currency crisis developing, and much more.
The interview with Nenner begins at the 19 minute point of the broadcast.
Source: Financial Sense