Charles Nenner Sees 1 Year Of Deflation Followed By 30 Of Inflation

Charles Nenner, president of the Charles Nenner Research Center, believes in significant deflation for the next year or so, than 30 years of on inflation to follow.

This is a fairly popular theory brought forward by many analysts lately. In the short term a sluggish overall economy and high unemployment will continue to put a clamp on any upward price pressure. However once past 2010 with the glut of money poured into the system since 2008, inflation is destined to take hold.

Nenner advises to lock in any long term debts (mortgages) at current levels, before interest rates spike.

This philosophy has a lot of investment ramifications as well. If one agrees with Mr.Nenner it might be risky to purchase gold, commodities, and the like for the next year as any hint of deflation could send these assets swooning. However once through 2010, there might be a stampede back into them, if inflation does take hold.