Former Goldmanite and big-picture market forecaster had a grave prediction for FOX Business yesterday.
He started off the interview by saying that he’s telling his big clients to get out of the market because the DOW will drop to 5000.
Here’s how he began the interview. A couple minutes in, he makes a dramatic shift and suddenly warns of a war.
He started off like this:
“We went log in 2009 in the first quarter [when] we had a price target of 1356 on the S&P 500 , and we’re getting close,” he said. “So I told my big clients, hedge funds, pension funds, and big firms to go almost totally out of the market.”
“It doesn’t mean that we go down immediately, it can take a couple of months. And if we would close in on 1356, which we’re pretty close, we’re 1% away.”
And if we close before 1357, we’re in trouble, he said. But don’t get too scared, because “the market looks reasonably stable at the moment.
His general opinion of the state of the market is pretty neutral too. He says, “So what I think we’re at in the beginning of 2011, most of the gains have been taken.”
Then he commented on Carl Icahn, answering the question, did he get out too soon? (The huge hedge fund manager recently announced that he’s retiring.)
Nenner said that yes, Icahn got out too soon.
And then he explained the reason he felt that way, “I was on another network and they said that he doesn’t understand macroeconomics, and I say, give me a call.” (Nenner is the founder of the Charles Nenner Research centre.)
And then he dropped a bomb.
The question was, What would trigger the DOW dropping to 500?
Nenner replied, “Well, I don’t want to depress you, but I should tell you that I also do war and peace cycles and it shows that were going to have a major war at the end of 2012, beginning of 2013. And I think that’s going to do it.”
Watch below for the reaction from the FOX Business reporters to Nenner’s war prediction (“Wow,” and completely ignoring the question to move on to the next question) and their reaction to his reference to FoxBusiness’s competition (But we’re the only network, don’t you know?”)