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Opinion: How the stock market could suffer a ‘black swan’ event from Trump’s policies - MarketWatch

1. Rising recession risks due to consumer pessimism may affect S&P 500. 2. Tech sector health is vital; disruptions could trigger a bear market. 3. Growing federal deficit may induce higher interest rates impacting investments. 4. New tariffs could disrupt supply chains, leading to inflation and recession risks. 5. Both banks and the housing market show vulnerabilities that can affect stability.

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FAQ

Why Bearish?

The combined negative factors pose significant risks to economic stability. Historical precedents, like the 2008 financial crisis, illustrate how regulatory relaxations and rising debt can cause severe downturns.

How important is it?

The article directly addresses systemic risks that could significantly impact S&P 500 constituents. Given the current economic climate, investor sentiment is particularly sensitive to these risks.

Why Long Term?

Ongoing economic and regulatory challenges will evolve over time. Similar to post-2008, the effects can linger, impacting growth and investment for years.

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