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Fed's "Inadvertent" Sense Of Panic

Written by Staff Writer

640px FedReserve AtlantaTrader Warns Yield Curve Inversion Confirms Fed's "Inadvertent Transmission Of A Sense Of Panic" -Zero Hedge
"It isn't all that meaningful to debate whether the inverted yield curve in the U.S. that occurred Friday will lead to a recession a year from now...The point is, it was a clear sign that investors perceive that there is trouble lurking now. And you need to trade accordingly. It is a mistake to watch how the shape of the Treasury curve evolves and start parsing the U.S. data in isolation. Because if you do that, it is in fact reasonable to conclude that the market has probably overreacted.

As has the Fed. If not in deed, in how they conveyed their message. They inadvertently transmitted a sense of panic. But it just isn't possible to escape the fact that how the rest of the world is faring directly affects the U.S. economy and asset prices....As far as equities are concerned, the S&P 500 traded conveniently down to and settled at its first major technical level at 2800. It was instructive that I heard more people discuss how much further it can fall and still be 'corrective.'"