The Stock Market Is Doing Something It Has Done Only 2 Times Since 1985, and History Is Clear About What Happens Next
In fact, the S&P 500 has only reached a forward PE ratio above 22 during two periods since 1985. The first time was the dot-com bubble. The forward PE multiple drifted above 22 in 1998 and generally stayed above that level for about three years. The S&P 500 ultimately declined 49% after peaking in March 2000.