There were alarmist headlines late last week about the inverted yield curve, something that can signal an upcoming economic recession. The media is quite good at sounding alarms. The implied investor reaction is to retreat to the sidelines until the economic bust is over and get back into the market once the yield curve has developed a healthy steepness.
Many investors apparently thought so. The S&P 500, on Friday, dropped 1.9%, as people reacted as if a recession would happen on Monday. Wise investing is not so simple.