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An outspoken and oft-quoted stock market technical analyst has predicted a 'major economic crisis' is imminent sometime after 2013.
In a televised interview yesterday on CNBC, chartist Charles Nenner, claims that we should all prepare for a real financial shellacking about three years from now.
So what's Nenner's basis for his bold prophecy?:
-Market fundamentals? Nope.
-Global currency trends? Nothing to do with it.
-The way the stars will line up? Well, not exactly, but you're in the ballpark.
According to Nenner, markets move up and down based on--ready for this--sunspot activity. This theory centers around his observations that when there is a high intensity of sunspots, markets rise. Conversely, when they lose their intensity markets drop. And since sunspots alter people's moods, it should be abundantly obvious that this phenomena creates the subconscious impetus behind their investment decisions, right? Bada-boom-bada-bing.
Somehow, Nenner has determined that things are now moving in direct correlation with a bunch of solar-related dynamics, and well, there you have it.
Look, we've all heard that the stock market is temperamental and emotional, yet this whole sunspot-predictor thing strikes me as going too far.
Or is it?
On one hand I'm not about to risk my daughters college tuition based on solar activity information posted on the NASA website www.nasa.gov. Yet, at the same time, placing my confidence in what the traditional Wall Street pundits and financial media has to say seems even less reliable.
Okay okay, so I'll admit Nenner's not the most reliable source--he's been kind of hit-and-miss on his market calls the past few years. He knocked it out of the park when he called the 2007 high. Yet he failed miserably when he warned of Dow 5000 this summer.
Yet despite all of the reasons to be cynical, my bottom-line is that I'm going with Nenner and his sunspot stuff. This might just be a case in point of 'The man with one eye is king in the land of the blind'.
