Tuesday, September 18, 2007

The Living Yield Curve (One Bond Strategy) | SmartMoney.com

The Living Yield Curve (One Bond Strategy) | SmartMoney.com:
"A normal yield curve, therefore, slopes gently upward as maturities lengthen and yields rise. From time to time, however, the curve twists itself into a few recognizable shapes, each of which signals a crucial, but different, turning point in the economy. When those shapes appear, it's often time to alter your assumptions about economic growth. To help you learn to predict economic activity by using the yield curve, we've isolated four of these shapes — normal, steep, inverted and flat (or humped) — so that we can demonstrate what each shape says about economic growth and stock market performance"

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