Wall Street Prophet: The US stock bear market may have begun, fearing a repeat of the 1987 flash crash

Revered as a Wall Street prophet and one of the famous bulls, Ed Yardeni, President of Yardeni Research Inc., has recently shown a subtle shift in his view on U.S. stocks. The steadfast bull who once predicted that the S&P 500 index would hit 7,000 points now says: "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 rare flash crashes similar to those in 1962 and 1987. These types of crashes usually come quickly and reverse just as fast, so this could provide investors with opportunities to buy at low prices, especially for those overvalued but recently fallen stocks." Notably, Yardeni has raised the possibility of a U.S. economic recession and entering into a bear market from previous estimates of 20% up to 35%, while reducing the probability of bull market continuation until 2025 from previously expected rates of 80% down to 65%.