In this extensive interview with USAWatchdog.com's Greg Hunter, Charles Nenner, renowned financial and geopolitical analyst, has been saying for a few years that “there would be no market crash until the end of 2017,” and “if people were not positioned correctly, they could lose everything.”
It’s nearing the end of 2017, and Nenner says, “I think we are there already. . . . We, personally, are totally out of stocks at this point.”
So, where is Nenner telling people to stash their cash?
Nenner says, “Put your money in the bond market. A new bull market in bonds is developing... The people in the Fed are now in their 60’s or 70’s, and what they remember is inflation, inflation and inflation. I think they are on the wrong side. It’s very hard for them to turn around and say deflation, deflation and deflation as it is for most market people because they haven’t lived through deflation. In the last 500 years of investing, deflation is the norm. . . . I think deflation is the problem, and I see hawkish comments from the Fed, and I don’t think they are going to raise interest rates. . . .We are going to have a deflationary crisis coming up. . . . Interest rates will go lower because we are going into a recession and even a depression.”
Nenner also points out that years ending in the number seven are not good for financial markets. Nenner explains, “It’s very interesting. Years that end with seven are usually the start of a big correction. 2007 started with a big correction, and it went through 2008. 1997 to 1998, the Russian crisis, a big correction. 1987, everybody remembers that. Then, again in 1977, and there is only one exception, and it’s 1929. . . . That year, it was two years late. . . . Why this happens I have no clue. . . . My last argument is this. A lot of stocks come out with good numbers, and they don’t go up anymore. This usually happens at the end. The Russell 2000 is not even up for this year. So, something is going on. . . . I see IBM and General Electric going down 30%. I don’t see the market going up with IBM and General Electric going down 30% already. I have been saying for years, the last part of 2017, we are going to top. . . . Next big move is down, and that will continue for four or five years.”
Nenner is also long term bullish on gold. Why does he like the yellow metal? Nenner says, “Gold goes up 50% of the time in inflation and also 50% of the time in deflation. Most people don’t know that. If stocks go down and bonds are not safe and real estate goes down, where are you going to put your money? You put it in gold.”
Nenner’s biggest problem area is extreme social unrest in the U.S. Nenner explains, “I just saw on television there was a peaceful right wing march, and I saw all the left wing people coming in with black clothes and with bottles and beating them up. This is exactly the 60 year cycle in social unrest. So, social unrest is in a cycle and apart from North Korea. This is very worrisome. This social cycle is worrisome in the United States because of social media. A small group can have more influence than a big group. The other thing I might say, and I am not afraid to speak up, I can almost not live in this country, the U.S., because you cannot say the truth. You can’t say what the facts are . . . like both sides were at fault in Charlottesville. I would say I would worry more about the social unrest and breaking up the United States than I worry about North Korea.”