July 15, 2010 by staff
Charles Nenner:I had the pleasure to meet and interview Nenner Charles and his partner David Gurwitz here in the past and we do it again in the future. Mr. Nenner newsletter, of which I am a receiver, has proven to be put on in most of its forecasts for different markets in recent years. His research cycle is very respected and worth listening to. In a telephone interview today from Israel Nenner said the following to say about the markets and the U.S. economy:
1. Investors may use this last bounce, which can last a few more weeks until the end of August, to reduce holdings or exit altogether.
2. We are currently experiencing a very similar situation to 1990 Japan: bent deflationary bear market with huge demonstrations. Mr. Nenner see this continuing to unfold in the coming years. Therefore, it will be difficult for investors to make money in the coming years. In fact, Mr. says investors should Nenner “just be happy if you do not lose money over the next two years.”
3. The economy did not begin to recover until 2020.
4. Let’s test 2009 lows again in the next two years. You may not “fall out of bed” at the end of this year, but the maximum for the year is around 1155 for the S & P. [At this moment sit in 1100].
5. S & P 1085 is an important level to hold, but if it breaks 1025 “can be everything.”
6. As for the Dow Jones industrial average: on average, the Dow advances of 10% per year. The Dow was much more than the average in the 90 finals. The average currently stands at 7000 so to return to the Dow average need “to reach my goal disadvantage of 5000.” For long-term investors waiting for the level of 5000-7000 may be the most appropriate course of action.
As with any forecast of any person or company should consider for your ownanlysis. Obviously, the reduction in stock trading term, will allow for trading ups and downs in the heart of any long range or bull case scenario have to bear. Always keep in mind what Keynes said: “Markets can remain irrational longer than you can remain solvent.”
You can listen to another phone interview here, http://finance.yahoo.com/tech-ticker/get-out-while-you-can!-dow-headed-to-5000-charles-nenner-says-520577.html?tickers=^dji,^gspc,spy,^ixic,qqqq,dia,iwm
and view another succinct Nenner commentary here. http://articles.moneycentral.msn.com/Investing/MutualFunds/could-the-dow-fall-to-1000.aspx
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