It is true the flattening yield curve has been in the news for at least a year. But there is a psychological effect to the actual inversion (which only happened intraday). The WSJ is reporting yields on both the 2 and 5 as being 2.823%.
FWIW, is after two solid years of doing very little with my investments, other than complaining about how stock were overvalued. Last week I started actively selling stocks, and even bought some puts on the S&P 500. I expected that Trump and Xi wouldn’t reach any agreement (I was wrong) and so stocks went up instead of down.
I was particularly concerned because a guy that back in 2007, warned folks that real estate market was going to crash and take banks stocks with it. Turn very bearish last month. I listened to him back in 2007, but didn’t act, so this time I am.
But the bigger picture is interest rates. I can get over 3% with a 2 year CD, even the best president would have trouble keeping the US out of recession in the next 2 years, so with this idiot…