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This veteran investor crunches the numbers and sees the risk of a full-blown bear market - MarketWatch

1. Moody's downgraded the U.S. credit rating, affecting market sentiment. 2. Kotok forecasts S&P 500 EPS drops by $30 due to tariffs. 3. Estimates suggest S&P 500 could fall to 4,000-4,400 range. 4. Rising Treasury yields could lower S&P earnings multiples. 5. Investor mood is bearish with ES00 down over 1%.

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FAQ

Why Bearish?

The downgrade and S&P earnings estimate reductions indicate a negative outlook, akin to past market downturns during similar economic pressures.

How important is it?

The article highlights changes in earnings estimates and debt ratings, crucial factors influencing investor behavior and market dynamics.

Why Short Term?

The immediate effects of tariff impacts on EPS and market reactions are expected to unfold quickly.

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