Charles Nenner Sees Stocks Topping Out This Year
Renowned technical analyst Charles Nenner, founder and president of the Charles Nenner Research Center, was interviewed recently by John Bachman and predicted the current correction would last until the middle of February. However, the stock market will resume its climb in a couple of weeks and from there “will make a major top this year and we’re going to get in trouble,” he explained [see embedded video below].
Nenner said the market has been growing on PE expansion versus earnings growth and his model indicates this process can continue for a little while longer.
Regarding commodities, Nenner said they are in a bear market, so they are not the place to be. Nenner expects the gold market to hit a major low in July and would represent a good buying opportunity for investors.
Nenner continues to see deflation as a problem with prices declining throughout the world. He commented on Europe’s inflation rate of 0.6%.
Nenner doesn’t see an impact from the $10 billion a month Fed tapering, saying that Europe has been tapering for a year and a half and the market still goes up.
The interview continued with Nenner explaining his models, how the U. S. economy is like a big boat that is difficult to steer, how financial journalists place the investing public on the wrong side of the market, why too much emphasis is focused on income inequality and people should be satisfied with what they have, his work on war and peace cycles, and why the real estate market’s bear market recovery will fail.
Back in August, Nenner indicated the U. S. was on course for a severe recession because there wasn’t enough deleveraging and the recovery from the past economic downturn was so weak [link].