The preceding chapter discussed how 1999 experienced a rising inflation threat from rising oil and industrial material prices. This pushed interest rates higher, which began to have a negative impact on those sectors of the stock market that tend to be “early peakers.” Interest rate-sensitive stocks are an example. Old economy stocks, which are sensitive to interest rate direction, had already started to weaken (which was reflected mainly in a falling NYSE Advance-Decline line). By contrast, new economy stocks shrugged off the threat of rising rates during the second half of 1999. Something happened at the start of year 2000, however, as a direct result of the dangerous intermarket trends that existed the previous year. The Fed had started....inverted yield curve