Charles Nenner, the charming oddball who occasionally pops up on CNBC with his wild but very prescient predictions is now putting his reputation on the line with a rather large prognostication. Last November, Nenner announced that he sees the Dow moving to 5,000 within the next 2-3 years through a combination of deflation, a "major military conflict" and, wait for it,...sun spots. Charting a correlation between sun spot cycles and market activity is one of Nenstradamus' specialities. While this may sound fanciful to the untrained ear (and the trained ear), Nenner does have a surprisingly impressive track record of market predictions.
For Example:
- Nenner called for Dow 14,500 in 2007 (The Dow actually reached 14,200 in October of 2007 before crashing)
- In August 2006, he called for a substantial drop in the housing market. We know what happened there.
- In 2009 , he called for deflation and the demise of Dennis Kneale's CNBC career. Although the last one was a gimmie.
Nenner may be the only man who uses the NASA website for his technical equity analysis. I must say though that I always prefer a colorful Nenner segment on CNBC to some milquetoast midwestern fund manager telling me to buy Microsoft because of it's improving balance sheet. Give me sun spot cycles with a dash of sorcery any day over that obvious drone.
If however, Nenner is correct about this 5K Dow scenario, we better hope Bob Prechter has extra room in his fallout shelter.
