MINNEAPOLIS (WCCO) — The stock market fell sharply Wednesday, with the DOW, Nasdaq and the S & P 500 all down. The bond market prompted the plummet.

CBS News reports yields on the 10-year-treasury note fell below the 2-year note, signaling a yield curve inversion for the first time in more than a decade,

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“I think most people think it’s a recipe at a fancy restaurant, the yield curve inversion. It sounds like a kind of pineapple upside down cake,” said Jim Cahn, chief investment officer for Wealth Enhancement Advisory Services.

In actuality, it’s a fancy term that could be a sign something bigger is on the horizon.

“When it inverts, that really tells us that the market is not optimistic about the future. We haven’t seen a yield curve inversion since 2007 and oftentimes, not always, these yield curve inversions precede a recession,” said Cahn.

CBS News reports a boiling trade war between America and China as well as a worldwide economic slump may have both contributed to the sharp drop.

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“I’d say it’s a yellow flag and I’d say even if we knew we were going into a recession, it doesn’t mean sell your stocks. Be careful,” said Cahn.

Despite the numbers, Cahn says investors shouldn’t panic.

“Don’t run out and sell everything just because the market was down almost 3% today. That would be a mistake,” said Cahn. “The key is to be a long-term holder of stocks.”

He believes the Federal Reserve Bank might be a little out of step with the market, and action on their part could help this slowdown speed up.

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“I do think one way around this conundrum of the inverted yield curve is for the Fed to cut interest rates at its next couple of meetings. I think we will see the yield curve normalize,” said Cahn.