It's been foreigners looking for yield that has driven the U.S. curve to flatten. The market will interpret this inversion as more circumspect than previous ones.

The market reacted exactly the way they wanted it to, which was to flatten the yield curve. I think the point is clear: Policy makers are going to do whatever they can to help the Fed. The rate cuts that the Fed is putting through are only hitting the short curve; they're only psychological.

The yield curve is a really powerful indicator. It always has been. The shape of the curve still matters.

On calendar year 2000 revenues, this would yield a $387.9 billion market cap, or $70 per share. This is right in line with current trading levels.

What we are looking for is interest rate cuts to be beneficial to the market.

I think the message in this inverted yield curve is muddled. I think it is something to watch and to understand better. But I am not overly concerned.