If you’re frantically buying or selling stocks based on what the inversion and the subsequent uninversion of the yield curve is signalling, Jim Cramer has a message for you: Calm down.
‘Everything seems like a trap now. It was a trap to sell off the inverted, and now they have to go buy back on the uninverted. What happens if we get inverted again?’
That’s Cramer questioning the wisdom of traders who seem to be reacting to every headline popping up in the financial news cycle these days.
Cramer said he understands why people are so concerned about the economy, considering the fact that inversions have preceded every recession of the past 50 years, but, overall, he says, the fear seem overdone at this point. “I do feel like things are worse when I listen to people talk, than reality,” he said.
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