Nenner says that stocks should remain in an up cycle into mid-February. Nenner is unsure whether the cycle top in February 2013 is a long term cycle high or a short term cycle high. Previously, Nenner has mentioned that 2013 would be a down year but now he is unsure.
He expects that gold has already bottomed around $1685 and he has bought gold calls and Newmont Mining. This is a contrarian call as the sentiment in gold is entirely negative.
Nenner was most bearish about bonds. He took a long term position in TBT. He expects yields to rise for the next 30 years as we have already seen a long term high in the yields.
“You have to be very careful especially with your bond position.
Nenner sees oil up until May 2014. He said oil could go back up to the old highs. He is unsure what the catalyst would be for higher oil prices. The catalyst could be a war in the Middle East. If oil were to rise over $100 it would surely weigh on the markets.