About Inverted Curves

This is not a lesson in mathematics and certainly I do not plan on boring you with a long explanation, I just wanted to highlight the fact that the yield curve inverted for the 1st time in 5 years yesterday.  So what does this mean? What it means is that the short term investment vehicles are paying more interest than the long term ones.  So if I gave you 2 choices and told you that you can get 4.35 tying your money for 10 years, or I gave you 4.4% if you invest your money for 3 months which option would you take? me too!  So guess where people will put their money preferentially?  In the past an inverted yield curve is precedes a recession.  So does this mean that the US will go into recession by mid to late 2006?  I do not know but it could be very possible.

I'm back from a few days away at my in-laws, while on vacation I read a book my wife gave ma as a Christmas gift titled "Winner's Never Cheat," is a book written by Jon Huntsman, founder and CEO of Huntsman Chemicals.  It is a good reminder that there are still good people in this world and you can be honest and still make money.  In a world that is full of greed and ambition, it is hard to believe that people with good morals and values can aspire to make fortunes by playing a fair game.  I'd say the book is 4 out of 5 stars in my rankings.

For those of you with Mexican roots, happy April fools day or "Dia de los Inocentes," and no, I did not lie in this blog, everything is true.  Tomorrow I will try to make a list of the best books I read in 2005.  The year is winding down, take time to reflect on the year that just passed and plan your goals for 2006, remember that life is finite and you are the only one that decides how you want to spend it.