Charles Nenner, founder and president of Charles Nenner research, forecasts that 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.

Nenner says that at present stocks are 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. Deflation will come 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.

While most stocks will get caught in the downturn, the exception will be those with exposure to soft commodities like wheat, corn and soybeans, he added.

Meantime, last week, JPMorgan strategist David Kelly said there is still a lot of opportunity in stocks and that a double-dip scenario is "very unlikely."