The two things anyone seeking to predict future trouble in the stock market looks at are the yield curve spread and oil prices.
The spread the 10-year and the 2-year is down to 23 basis points, from 120 in October. At the current pace of compression, it could be negative by the end of the week.
The 10-year - 3-month has generally moved ahead of the 10-2 spread but is not doing so on this occasion. That is because bond funds are focusing on short duration bonds because inflationary pressures take a bigger toll on long-dated issues.Click HERE to subscribe to Fuller Treacy Money Back to top