CHARLES NENNER ANTICIPATES MARKET COLLAPSE AND MAJOR WAR.
On March 9th 2011 former chief analyst for Goldman Sachs Charles Nenner, who predicted the crisis of 2008, told the Fox Business network about his expectations of a major war and global economic collapse at the end of 2012. The expert said: "I told my clients and pension funds and big firms and hedge funds to almost go out of the market, almost totally out of the market".
Can Charles Nenner be trusted?
According to the analysts for the US and Canadian Association of Traders and Investors under Masterforex-V Academy , the peculiarity of the situation is that Charles Nenner is not some yellow-press journalist looking for another sensation. He is a respected researcher known as:
· Accurate forecaster. For a long time he used to be the chief analyst for Goldman Sachs, one of the world’s biggest investment banks, which has probably become one of the most influential financial institution on the planet.
· Gifted mathematician. Charles Nenner heads his own research center (Charles Nenner Research Center), where they are trying to predict market trends with the help of various math models and computer programs anticipating numerous behavior models.
· He uses modern methods of forecasting. His up-to-date methods of social and economic forecasting are successfully combined with global political tendencies. As a result, we have pretty interesting conclusions, which are trusted by many big businessmen by the way.
· He has already made some accurate forecasts in the past (which eventually turned out to be true). It was him who accurately predicted the global economic crisis started in 2008 (He was laughed at until the crisis broke out). He anticipated the bankruptcy of numerous US banks, as well as the collapse of the US housing and securities market 2 years before it actually happened. That is what he became famous for. So, Charles Nenner has a reputation of a respected analyst. His style is quite academic and his statements are precise. In the US (and global) financial circles Mr. Nenner is considered to be a brilliant financial strategist. Some people say he is almost a “market prophet”.
So, the conclusion is obvious:
Charles Nenner’s words should definitely be treated very seriously. May be that is why David Asman and Elizabeth MacDonald (Foxbusiness) sat in stunned silence looking at each other. Professional economic journalists know perfectly well that Charles Nenner never jokes and is almost always right.
What exactly did Charles Nenner forecast for the global economy to shock the community?
1. The collapse of Dow Jones Index. According to him, at the end of 2012 the index is expected to collapse down to the record value of 5000. For comparison sake, at the height of the latest crisis in March 2009 the low was set at 6,547. However before collapsing the index value is said to reach 13000. After that the market will see a rapid collapse, which will take several months. That is why he recommends that all big-scale market participants (including pension and hedge funds, corporations and major investors) should wait for the index to reach 13000 and then should “go out of the market”.
2. Mass collapse of all the financial markets (stocks, bonds, futures). The process will start in 2012 and will last for 2-3 years. Charles Nenner says that the major reason for that will be a change in the war-and-peace cycles. In other words, the governments will be actively investing in military actions in order to stimulate their economic development at the expense of expanding their military industrial establishment.
Mr. Nenner himself didn’t mention any particular sides involved in the forthcoming war while the anchorpeople probably were so surprised with his words that they failed to ask him for any more details on the matter (war).
What conclusions can we make?
Well, it is rather difficult to comment on such a brief and at the same time global forecast. However,Masterforex-V Academy expertswant you to pay attention to the following key points:
· It is obvious that Charles Nenner made not just some common forecast on Fox TV. A financier and investor like him would never risk his reputation to make a sensation or to become famous, especially as he is already famous. It is either some warning for “the friendly” or a part of some scenario aimed at initiating another major downtrend. The 2nd variant sounds more preferable.
· Such financial giants as Goldman Sachs (Charles Nenner used to work for it, even though he doesn’t any more) are able to change the market conditions and initiate new trends.
· That is why Nenner’s opinion is not some guesswork or even calculation. It is the manipulation of public opinion. They are just trying to change the mood and sentiments in the investment and trading circles around the world.
· It is not so difficult to calculate the global political tendencies. The events in Tunis, Egypt and Libya showed how fragile the power in the oil region is. It is obvious that the chain of “the Arab revolutions” with their unpredictable consequences is unlikely to stop suddenly.
It leads to 2 possible scenarios, both escalating the situation:
· Scenario 1: the unrest is still seen in the countries which are not so significant in terms of the global supplies of various energy carriers. The deficit is filled by Saudi Arabia, Iran and Russia. However, when the chain of revolutions strikes the mentioned countries, foreign intervention will be needed (to support either the rebels or the governments – it will depend on the relations between the ruling powers and the West (US and EU). In this case the shocking forecast about another major war won’t seem like a fantasy.
· Scenario 2 (simpler and clearer): The “Arab revolutionists” may face numerous internal political problems and may want to teach Israel a lesson. Because of the Islamic solidarity every Islamic state in the area will support them (including the Shiite Iran and NATO’s Turkey). The USA will obviously come to help the Zionist state. It will result in a short-tem (less than a year) but rather capital-intensive war, which will make the financial markets collapse.
Market Leader and Masterforex-V Academy conduct a survey. To participate in it, please, answer the following question at the forum for traders:
Is Charles Nenner right saying that a major war is going to take place in late 2012?
· Yes, he is right: the Arab revolutions and struggle for crude oil may provoke military actions from the outburst of terrorism to some head-on clash between the US and China.
· Yes, he is partially right: the major financial markets are going to collapse, Nenner is right about it. However, all the modern armed conflicts can only be local.
· The world is recovering from the crisis of 2008-2010. Either Charles Nenner is mistaken or the global banks are looking for “prey” to go short (start selling).