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Market Extra: Why an inverted yield curve doesn’t mean investors should immediately sell stocks

An inverted yield curve does not an immediate stock-market inferno make. And Tony Dwyer, chief U.S. markets strategist for Canaccord Genuity, is urging investors to view a yield curve inversion as an opportunity rather than a death knell.

“An inversion of the yield curve does predict recession, but historically it is a better buy signal than pointing to a time to get sustainably defensive,” Dwyer said in a note to clients Monday.

Read:The yield curve inverted — here are 5 things investors need to know

An inversion occurs when the yield on long-term debt drop below its shorter-term peers, potentially signifying a lack of confidence in the economic outlook.

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