Wall Street Prophet: The U.S. stock bear market may have begun, fearing a repeat of the 1987 flash crash
ChainCatcher news, hailed as the prophet of Wall Street, the renowned bull Ed Yardeni, president of Yardeni Research Inc., has recently shown a subtle shift in his view on the U.S. stock market. This staunch bull, who once predicted that the S&P 500 index would soar to 7,000 points, now states, "We cannot rule out the possibility that a bear market may have quietly begun."He further pointed out, "Trump's Tariff 2.0 could trigger a rare lightning crash similar to those in 1962 and 1987. Such crashes typically occur quickly and reverse just as swiftly, thus providing investors with a buying opportunity, especially for those stocks that are overvalued but have recently declined." Notably, Yardeni has raised the likelihood of a U.S. economic recession and the stock market entering a bear market from the previous 20% to 35%, and has lowered the probability of a bull market continuing into 2025 from the previously expected 80% to 65%.