Tags: s&p | nenner | stocks

Strategist Nenner: 'This Isn’t the Moment to Get in'

By    |   Wednesday, 28 March 2012 08:28 AM

Stocks have enjoyed a torrid rally in recent months, with the Standard & Poor’s 500 Index jumping 13 percent so far this year to 1,412 at Tuesday's close.

But the party won’t last much longer, predicts Charles Nenner, founder of Charles Nenner Research. He says the S&P 500 will likely gain another 2 percent or so, to 1,449, within a month and then stall.

“The first stop is 1,449,” Nenner tells Yahoo. “It could be a very important high. If you look at that, this isn’t the moment to get in."

Individual investors tend to play stocks wrong, buying high and selling low, he says. “They're more upset if they miss another 3 percent on the upside than 10 percent or 15 percent on the downside.”

So what should investors do if the S&P 500 indeed hits 1,449? “At 1,449, we’re out,” Nenner says. “We’re not going short, we’re standing aside. There’s nothing wrong with cash. Then we’ll see what happens after that.”

Global central bank easing has boosted the stock market, he says. But, "It's not going to end well. You have to time it. For the moment we're still OK."

Others are less certain. “It’s difficult to call the end of the stock rally at this point,” Michael Sheldon, chief market strategist at RDM Financial Group, tells Bloomberg. “The trend of economic data has been improving. . . . Yet we really haven’t seen much profit-taking. It could be choppy.”

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Wednesday, 28 March 2012 08:28 AM
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