It is the five and ten year squeeze on the yield curve where we should look. If investors find solutions to five an seven year constraints, then the yield curve widens along the bend, a flattener.
What constraints? Actual investment periods for return on investment with capital need to be established at those terms. Assuming the positive, we need to get pay-offs in five to seven years for investments so those terms can take up more space on the curve. As those terms spread, the curve inflates to a nominal normal.
So, a clue. What is the most likely, continuing constraint we are facing over the next five years? I would look for companies that seem to be realistic solving major problems over this this time scale.
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