Charles Nenner: Cycle Shows Stock Market Up Into February
Charles Nenner, executive director of the Charles Nenner Research Center, was interviewed on the Financial Sense News Hour with Jim Puplava.
When asked by Puplava after following a good year in 2012 whether we could see a good stock market again in 2013, Nenner responded that their cycle work shows the stock market being up into February. Nenner pointed out his target for the past 1 1/2 years was 1460 on the S&P 500. He added there was a small chance we’ll take it out immediately and that they are on a buy signal. Nenner said they don’t have a big position in equities, but there were certain stocks they like.
Regarding bonds, Nenner said they were very negative and he was looking for a cycle low in 10 days to 2 weeks.
Nenner said his economic indicators don’t show economic weakness.
Nenner explained his cycle work comes up with different levels of exact highs and lows. After they occur, you’ll read in the newspapers why it happened, he added.
The interview (around the 17 minute point of the broadcast) continued with Nenner commenting on the effect of the Federal Reserve’s QE program on the cycles, predicting when the 6.5% Fed unemployment target will be reached, the impact of rising payroll and other taxes on the economy and markets, what happens after the February cycle high, his current view on gold (close above $1,685 would signal low was in), his prediction for interest rates and his comments on his long-term position in ProShares UltraShort 20+ Year Treasury (TBT), his outlook for energy prices (increasing into early next year), and his current advice for investors.
Back in early November, Nenner said he would go long India’s stock market for an upturn in 2013, that China was bottoming and the cycle for the bond market was down [link].
Source: Financial Sense