Investing Watch: Crossing Wall Street has a cool chart comparing how equity sectors during periods with different yield curve shapes.  For 2008, the yield curve is starting at a 10-year minue 3-month spread of 1%, with a steepening trend, maybe towards 2%.  What to invest in if the curve moves from 1% to 2% steepness: Health Care, Staples, Tech and Energy.  Makes sense, classic late-cycle and heading into recession sectors.  If the spread stays at 1%, drop tech for utilities.