Sector Investing

[Y worry Murray]

Thanks for that great post RtS, clearly the Hindenburg Omen has cried "Wolf" far to many times to be heeded. Perhaps a better indication of an impending collapse is an inverted yield curve. In the following chart it can be seen that when the long term bond yield exceeds 4.8% it is time for caution (last April). But when both long and short term bonds exceed 4.8% it is time to exit the stock markets or assume short positions (June 08).