Saturday, June 1, 2013

Charles Nenner outlook

From Financial Sense site:

Jim welcomes back noted technician Charles Nenner of the Charles Nenner Research Center. Charles sees many of his short-term cycles topping, with other cycles topping over the summer. He believes most of the gains are already in for the year, and feels that the average investor is too optimistic at this stage of the market. Charles sees strength in the US dollar until mid-2014. He sees higher interest rates coming, and is very cautious on bonds.

Some points on Financial Sense News Hour:

The market has probably seen the high for the year.  Short term correction coming. Above 1600, the market will be OK.   Still reasonable to buy dividend paying stocks (3-4% yield) and sell calls to increase income.

Gold will bottom in the middle of June (target of 1285) Middle of June and Gold is around 1285 -- then buy.  If it is the middle of June and gold is at a different price--he would still consider buying, since he has the cycle low occurring in the middle of June.

Get out of Bond Funds (higher interest rates = lower bond prices).   He is concerned too many are buying into dividend stocks, even though still considers them reasonable.  (I take this as be ready to unwind dividend positions?)  US dollar will strengthen towards the end of the year, and weaken in 2014.   Interest rates will rise and could rise significantly (EU concerns?).

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