Nenner: Inflation to Hit When Bond Rally Dies

Tuesday, 04 May 2010 08:33 AM

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The market is headed for deflation soon, said Charles Nenner, the founder of the Charles Nenner Research Center.

“We are still up for a deflation scare” in the near term, he said.

Investors should expect a short tem rally in the bond market ending in the middle of 2011 because of deflation, says Nenner, a technical analyst.

“The moment that the Fed will take liquidity out of the market, I think then we’ll feel some deflation,” he told Yahoo Finance Tech Ticker.

After the bond rally ends, inflation will occur, Nenner predicts.

The central banks solution by adding liquidity to the market is only causing — and potentially extending — inflation, he said.

“The longer it takes [the Fed to raise rates], the bigger the problem is going to be,” he said.

Inflation could jump to 5 percent to 8 percent during the next three to five years, said Rob Arnott of Research Affiliates, Money Magazine reported.

Other economists predict that deflation is headed this way.

“We could see annual economic growth of just 2% over the next decade, as well as significant deflation," said economic consultant A. Gary Shilling.

Investors should start preparing for more problems in the market.

“With the risk of more credit strains ahead, and possibly rising inflation in the next few years, it's a good time to be defensive," said John Hussman of the Hussman Funds.

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

NATO to Create New Force to Respond to Crises in Eastern Europe

Monday, 01 Sep 2014 18:40 PM

NATO leaders will respond to the Ukraine crisis by agreeing this week to create a spearhead rapid reaction force, pote . . .

US Asks NKorea to Release Americans on Humanitarian Concerns

Monday, 01 Sep 2014 08:45 AM

The U.S. government on Monday requested that the North Korean government release three U.S. citizens currently detained  . . .

Obama: 'Revving' Economy Calls for Higher Wages

Monday, 01 Sep 2014 17:22 PM

President Barack Obama renewed his push for Congress to raise the minimum wage Monday in a buoyant accounting of the eco . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved