Monday, August 24, 2009

Tim Knight on the "Big Picture"

Checking out a new post at Tim Knight's blog, Slope of Hope, entitled, "Big Picture".

As you can probably guess from the title, Tim has a rather definite bigger picture view of the markets and the economy. Let's just say that he's not convinced about the merits of the government's much heralded stimulus efforts.

Here's an excerpt from Tim's post:

One of the nicest compliments I ever received was from Tom Sosnoff (the co-founder of thinkorswim) who told an audience, "the thing I like about Tim, as opposed to a lot of other technicians, is that he actually has an opinion."

That I do! Oftentimes I will read newsletters or speeches where technicians will carefully word things so that "either A is going to happen or B is going to happen". This way, no matter what direction the market goes, they are safe. ("As I predicted, "B is going to happen", and it has!)

I believe the historic levels of government intervention and interference in what used to be a free market is going to have disastrous consequences.

I believe that the United States government, in collusion with financial institutions that have very close ties to the government, has embraced short-term solutions that will create long-term pain. In short, I think the market is going to be in much worse shape in 2014 compared to 2009..."

Go check out the full post, along with Tim's comments on the possible future direction of the major averages, at the link above (hat tip to Bear Mountain Bull).