Dow 5000 in Next Two Years

Those 401ks aren’t going to be worth the paper they’re printed on.

From CNBC:

The Dow Jones Industrial Average  will lose about half of its value over the next couple of years as it follows a Nikkei-like pattern of several sharp rallies in an overall decline, according to Charles Nenner, founder and president of Charles Nenner research.

Stocks are currently in a bear-market rally, and looking at charts and past trends, unemployment and leading indicators suggest the Dow will drop to 5,000 in the next two to two-and-a-half years, Nenner told CNBC in an e-mail.

Deflation will arrive, along with a sharp double-dip recession, pushing the Dow lower, although, like the Japanese market, stocks will see several jumps of 30 percent to 40 percent, he said.

He goes on t say investors should look into “soft commodities” which are things like Wheat and soybeans. Unless they come in long lasting food grade buckets you can store in your fortress I’d think hard about that advice.

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