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Katherine Ross: It's a down day in the markets. Joining me is Matt Cheslock. Trader on the floor of the NYSE. Matt we're down about 750 points right now. What should investors do?

Matt Cheslock: Well if you're using the inversion of the yield curve as your reason for selling, this was bound to happen. You know, we saw this almost happen on Monday. We had a 400 point rally yesterday. Should have sold then I guess. Now you're going to sell today on that? I think you have to be a little more patient as far as stocks go. The bond market's a totally different animal, but as far as stocks go, when there's an inversion of the yield curve, historically you have 12 months to 18 months before the recession happens. So, there is time. We've seen the market run as high as 13% after an inversion. So I don't know if it's time necessarily to take alarm based on that, but there's other pressing concerns and a lot of it has to do with the economic data out of China and Germany this morning.

Katherine Ross: And I want to ask, when you got a down day like today where you've got all major indices off 2%, what are investor's looking at? Is there any advice that you have for them?

Matt Cheslock: Well, you know, we've seen, I think it's 11 or 12 straight days or 1% moves in the market. So there is volatility today, It's double what we've seen recently. But you can't panic in this environment. If you are going to get out based on what you're seeing as far as the economic news the inversion of the yield curve, then you want to get out. I don't know if this is time to start market timing. And that's where the concern I think you have down here when you see a market down 700 points based on a news event, people are trying to market time. That really doesn't work well for most investors.

Katherine Ross: So we know that we're going to end out in the red today when we get the market close later on. But starting tomorrow morning, Thursday morning, what do you expect?

Matt Cheslock: What's interesting is Asia was up today and then their news came out about their economic numbers. We really started seeing the market sell off based on that as well. So we're going to see them probably in the red following this big move. I would imagine Europe will be further in the red. And then that's going to raise concerns about what's going on in Germany and Italy and the UK. That's all gonna come to the forefront tomorrow. So, I would anticipate probably another heavy selling day tomorrow. I just don't see, unless we get something out of our government, you know, Trump has been pretty good as far as giving the markets some positive tweets. I just don't know if it's enough to curtail the selling pressure that we're gonna see.

Katherine Ross: And next week are we even going to be thinking about today?

Matt Cheslock: No. We're going to be thinking about going to the beach and trying to get out from under all of this. You know, it's the end of summer. So there's volatility. There's a lot of people that are on vacation taking kids back to school, school is starting. So you're short staffed, and when you're short staffed in an event like this, things have a tendency to really snowball. So that may be what we're seeing is a lack of participation on the buy side because they're stepping away saying, you know what? I'm going to wait and see. I'd rather pay up like they did yesterday. Then try to pick a bottom.

Don't panic. 

Yep, that's the tattoo on Katherine Ross's wrist and, after the sell-off on Wednesday, it might come in handy as a reminder to investors to take a deep breath before taking part of the sell-off that happened based on a brief yield curve inversion before the market opened Wednesday morning. 

Matt Cheslock, equity trader at Virtu Financial, talked to TheStreet about the market sell-off and why he doesn't think that the sell-off will even matter to investors next week. 

Here's some advice to investors from Cheslock. 

"Well, if you're using the inversion of the yield curve as your reason for selling, this was bound to happen. We, you know, we saw this almost happen on Monday. We had a 400 point rally yesterday should have sold then I guess. Now you're going to sell today on that? I think you have to be a little more patient as far as stocks go. The bond market's a totally different animal, but as far as stocks go, when there's an inversion of the yield curve, historically you have 12 months to 18 months before the recession happens. So, there is time. We've seen the market run as high as 13% after an inversion. So I don't know if it's time necessarily to take alarm based on that, but there are other pressing concerns and a lot of it has to do with the economic data out of China and Germany this morning," said Cheslock. 

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