Diary Week 82: The Financial Bible-Book Of Revelations
Last week I put out a detailed piece about my Financial Bible - The US 2's 5's curve which you can read again here- IF The Shoe FITZ: Finding Religion Again- The Financial Bible
In this piece I argued why it had become very relevant again as it was for the three decades before Covid and suggested that we could see it once again invert and maybe head towards the historically pivotal minus 20 area.
However historically it has not just been the bullish turn towards minus 20 bp's that has been important but also (and potentially Moreso) when we turn off that level with a "bull steepening"
It is the bull steepening that suggests a new phase- particularly when it comes to the Fed.
What historically has been an important indicator to watch in that respect? (Again, trying to ignore the volatility of 2020 -2021.)
Let us look at the chart below, which again I have focused on for over 3 decades.