The well-known expert in financial economics, Charles Nenner, said that at the moment he is expecting massive deflation and a stock market crash. To prove it, the analyst said that previously he hadn’t made any mistake in his forecasts for the market.
The specialist developed so-called “Nenner’s cycle”, which, according to Charles, is able to accurately predict the time of maximum growth and fall of absolutely any market. The analyst said to the popular portal CNBC that during the following years, the overall stock market index S & P 500 will never rise 5% higher than the current index.
Charles Nenner added that a period of low income will be followed by years of serious losses. The most important event in the financial industry, which is due to be in the nearest future, is going to happen – the biggest collapse of the global economy that will happen from 2018 to 2020. However, after this period, the analyst expects a good rise of markets. As for the cause of the fall, he steadily responds that it is massive deflation. He added that he has focused attention on it for many years.
Now EU member states are very close to deflation, Japan faces a strong deflation and it is not ready to overcome this factor, now China is also experiencing a very low inflation. The expert noted that in the case if the dollar keeps growing steadily, in the near future we can expect deflation in the United States. Nenner said he strongly doubts that most investors are ready for such a turn of events.