/biz/ - Business & Finance

>>15251879

It's not good but it's also no catastrophe... yet. S&P is still trading above the August lows. Yield inversion is bad but it's not a panic sell immediately thing. There is always a rally after yield inverts. It's the same damned theory; yield inverts, rally back to recent highs, then about 6 months to a year and a half later, the blood truly flows. That's why I think today's sell on that news was too severe. There will be buying interest at these levels starting tomorrow.

To compare it against last year's violent drops, the market climate is a bit different now. Last year the general feel was the Fed was insensitive to the delicate balance existing in the market, hiking rates fast, and, on the deep December low, Powell had just hiked again after he saw what the previous three hikes did. That was very scary. This scenario right now is not as immediately scary.