Stocks are going to resume their rise, but are ultimately headed for a big tumble, says Charles Nenner, president of Charles Nenner Research Center.

"Now we're in a correction that will take until the middle of February, and then from there we go up again," as price-earnings ratios expand, he told Newsmax TV in an exclusive interview. "But we're going to make a major top this year, and we're going to get in trouble."

Meanwhile, commodities are in a bear market, he says. Nenner sees gold hitting a major low in July and then turning into a good buying opportunity.

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He's concerned about deflation. "In most of the world we see that prices are going down, and Europe already has a core inflation of 0.6 percent," Nenner said.

Editor’s Note: 38 Trades That Could Turn $1,000 Into $49,000

"If their currency doesn't go down, then they're all soon going to be deflation."

Nenner says intelligence is contributing to the unequal distribution of income. "If you're intelligent and you can come up with certain new ideas, you can make a lot of money which other people cannot. So that's why we're growing apart."

But always calling the direction of the market isn't all that easy.

"The American economy is like a big boat, that you can almost not steer anywhere. There's almost nothing you can do about it. There's almost nobody you can blame about it, there's nothing you can do," he said.

"Most people don't understand how financial markets work. Most journalists don't understand how financial markets work and they put you on the wrong side of the market all of the time."

Meanwhile, a major war is coming in the next couple of years, Nenner says. And not surprisingly, "it's not going to be good for the economy."

As for the rebound of housing over the past 18 months, "it's a bear market rally," Nenner said. "It's based on hope." The business cycle is peaking, he says.

Editor’s Note: 38 Trades That Could Turn $1,000 Into $49,000