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Charles Nenner: Dow Will Fall to 5,000 by 2017 or 2018

By Glenn J. Kalinoski   |   Wednesday, 06 Mar 2013 11:41 AM

While the Dow Jones Industrial Average closed at an all-time high Tuesday, at 14,253.77, Charles Nenner, founder and head of research at the Charles Nenner Research Center, says the Dow will plunge to 5,000 by 2017 or 2018.

“We’re in an inflationary period and it’s very difficult to make money,” he told CNBC. “I still have a target of 5,000 for the Dow that we should reach in 2017 or 2018, and then we’ll get a huge bull market so it’s best just to go to sleep with your money until then.”

Instead of wondering how much they can make, investors should be asking, “How much can I lose?”

Editor's Note:
Billionaires Dump Stocks. Prepare for the Unthinkable.

Nenner predicts a “catastrophe” not only for equities, but for bonds and the pound as well. He warned that there were hardly “any bright spots” in asset markets, until 2018.

His description of the U.K. currency was as of one of the worst performers of 2013 as it dropped below $1.50 on March 1, with the slump expected to continue into the summer.

“We’ve hit $1.50, and if we get close to $1.49, then we’ll go to $1.44, and if we get to that point before July, it could go even lower,” he said. “Austerity is not going to work in Britain.”

He added that even if the Bank of England introduces further quantitative easing this week, it would not support the currency.

Nenner also said that European stocks would fall this year. “You should take chips off the table. … The [market] insiders were buying [in 2012] and now the insiders are selling.”

Gold also doesn’t escape Nenner’s scrutiny.

“People tried to buy in every dip, which was too early, and you have to get used to [the fact] that sometimes the situation is dangerous and you cannot make the profit,” he said.

The stock market’s roar to record highs Tuesday reflected the Federal Reserve’s massive easing campaign, not the strength of the U.S. economy, says financial commentator Robert Wiedemer, best-selling author of “Aftershock.”

“Fed money printing is important” for the stock market, Wiedemer tells Newsmax TV in an exclusive interview. “The economy isn’t doing particularly well. This isn’t the economy of 2007; we all remember the boomy times then.”

Editor's Note: Billionaires Dump Stocks. Prepare for the Unthinkable.

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