Nenner: Inflation to Hit When Bond Rally Dies

Tuesday, 04 May 2010 08:33 AM

  Comment  |
   Contact  |
  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.

  Comment  |
   Contact  |
  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:
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

More Detainees Set for Release From Guantanamo

Thursday, 27 Nov 2014 22:34 PM

More detainees are slowly and quietly being released from U.S. detention in Guantanamo Bay, Cuba, The Wall Street Journa . . .

Romney to GOP: Pass 'Permanent Clarification' of Immigration Laws

Thursday, 27 Nov 2014 21:45 PM

Mitt Romney is urging Republicans in the new Congress to come together, swallow hard, and pass a "permanent clarificat . . .

IRS Gave White House Thousands of Taxpayer Documents

Thursday, 27 Nov 2014 18:48 PM

The IRS improperly turned over thousands of confidential tax documents to the White House for review, according to infor . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

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