How Billionaires Become Billionaires

There are many ways that people become billionaires, some inherit it, some get lucky and some earn it. For the ones that earn it, being able to accurately forecast the future is a key aspect. There is one common technique they use to forecast the future.   They use the 2 and 10-year spread on government bonds to do this. The Federal  Board of Governors of the Federal Reserve publishes a weekly summary of selected interest rates called H.15. On this lists you can find the yields for the 2 and 10-year bond. By tracking these two yields and calculating the spread between them you can actually gauge the future expectations for the economy. If the bond yield is compressing it means were probably heading for recession if the bond spread is increasing were probably heading for an expansion. Knowing this information will be very useful as you can imagine.