Yep, that’s the tattoo on Katherine Ross’s wrist and, after the sell-off on Wednesday, it might come in handy as a reminder to investors to take a deep breath before taking part of the sell-off that happened based on a brief yield curve inversion before the market opened Wednesday morning.
Matt Cheslock, equity trader at Virtu Financial, talked to TheStreet about the market sell-off and why he doesn’t think that the sell-off will even matter to investors next week.
Here’s some advice to investors from Cheslock.
“Well, if you’re using the inversion of the yield curve as your reason for selling, this was bound to happen. We, you know, we saw this almost happen on Monday. We had a 400 point rally yesterday should have sold then I guess. Now you’re going to sell today on that? I think you have to be a little more patient as far as stocks go. The bond market’s a totally different animal, but as far as stocks go, when there’s an inversion of the yield curve, historically you have 12 months to 18 months before the recession happens. So, there is time. We’ve seen the market run as high as 13% after an inversion. So I don’t know if it’s time necessarily to take alarm based on that, but there are other pressing concerns and a lot of it has to do with the economic data out of China and Germany this morning,” said Cheslock.
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Source:: Daily Times