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If you frantically buy or sell stocks based on what the reversal and subsequent non-inversion of the yield curve signal, Jim Cramer has a message for you: Calm down.
"Everything seems to be a trap now. It was a trap to sell the invertis, and now they have to buy the ones that are not reversed. What will happen if we are reversed again? '
Cramer questions the wisdom of traders who seem to react to every news item in the financial news cycle these days.
Specifically, the TV personality and the former hedge fund manager explained how the shares were hit hard Wednesday after the 10-year US Treasury yield.
TMUBMUSD10Y, + 3.10%
briefly reversed and slipped under the 2-year yield for the first time since the 2008 financial crisis.
Since then, stocks have rebounded. At last check, the Dow Jones Industrial Average
DJIA, + 1.08%
was up nearly 300 points.
Lily: Peter Navarro, commercial adviser to the White House, believes that the bull market is a "certainty" that will last until 2020
Cramer said he understands why people are so concerned about the economy, since inversions have preceded every recession of the last 50 years, but overall, fear seems exaggerated at this point. "I feel that the situation is worse when I listen to people talk than reality," he said.
Watch the CNBC video:
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