Yield curve analysis is generally held to be the most powerful tool we have for analyzing the risk and potential for reward in equities. The Federal Reserve economists refer to the yield curve frequently in their publications.

This graph from TIMING THE MARKET (John S. Wiley, 2005) shows how yield curves helped investors trade the S&P index:
S&P 500

Past performance is no guarantee of future returns. Trading in stocks carries risk.

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