Tags: Nenner | Inflation | Bond | Charles

Nenner: Inflation to Hit When Bond Rally Dies

Tuesday, 04 May 2010 08:33 AM

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.

© 2015 Moneynews. All rights reserved.

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

Chuck Hagel: Stress of 'Nonstop War' Driving Best Out of Military

Monday, 26 Jan 2015 09:28 AM

Departing Secretary of Defense Chuck Hagel said he's worried that the "stress and strain" of more than 13 years of war i . . .

Rubio, Cruz, Paul Address Koch Brothers' Organization

Monday, 26 Jan 2015 09:20 AM

More than 400 wealthy Republican donors received a preview Sunday of the economic and foreign policy positions of three  . . .

NYT: Romney's Mormon Faith Reason He Might Run Again

Monday, 26 Jan 2015 09:11 AM

Potential presidential hopeful Mitt Romney's devout Mormon faith is strongly tied to his sense of duty and patriotism, w . . .

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