Wall Street Prophet: The bear market in US stocks may have begun, threatening a repeat of the 1987 flash crash

Renowned as a Wall Street prophet and one of the most famous bulls, Ed Yardeni, president of Yardeni Research Inc., has recently taken a subtle turn in his views on U.S. stocks. "We cannot rule out the possibility that a bear market may have quietly begun," the stalwart bull, who predicted the S & P 500 would hit 7,000, said. He further noted that "Trump's tariff 2.0 could trigger rare flash crashes similar to those in 1962 and 1987. Such crashes usually come quickly and reverse just as quickly, so this could provide investors with a bargain-hunting opportunity, especially for overvalued stocks that have recently fallen." It is worth noting that Yardeni has raised the probability of a U.S. recession and a bear market in the stock market to 35% from 20% in the past, and reduced the probability of a bull market continuing in 2025 to 65% from 80% previously expected.