Slope of Hope Blog Posts
Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.
Yield Curve Inverts; Gold Awaits
Yield Curve inverts deeper than August, 2019
Like the larger media this tiny little spec within the media reports the news to you. The 10yr-2yr yield curve has inverted (ref. Yield Curve inversion upcoming). Now, what does it mean?
Well the first thing it usually means is not to panic (especially now that High Yield credit spreads are easing), but do tune out the media hype about it because it is not the inversion that tends to signal an economic bust but instead, the steepening that follows it. Among the important questions are how long will it remain inverted and how deep will the inversion go before the next steepener?
(more…)The Yield Curve Flattener
As the Yield Curve flattens, this inflation is different from the 2020 inflation
In 2020 an inflationary yield curve steepener was in the bag as the Fed dropped and pinned the Funds Rate and sucked up every bond it could get its hands on (in order to monetize/print). The bond market made the logical signals about the resulting inflation as the short end was pinned by a combination of Fed policy and the frightened, risk ‘off’ herds clustered in T-Bills and short-term Treasuries, relative to the long end.
Gold and then stocks picked up on it first, followed by commodities, which were tardy but are now the star performer late in the inflation cycle. Hmm…
(more…)Gas Pains
I’ve been watching them change the gas prices around here on practically a daily basis, and on the whole gas is about $6.20 per gallon in the Bay Area. Here’s a nationwide view:
Produce Price Morning
The last major economic data point that will tumble in before the crooks at the FOMC hold their kabuki theatre meeting will be the Produce Price Index, which is forecast to be 1% for the month. (As we’ve noted in the hallowed halls of Slope, inflation is running at 20% presently, and is sure to rise). Let’s just say we wouldn’t be surprised to see this coming in scorching hot. The number is release (to us peons in the public, at least) one hour before Tuesday’s opening bell.
