2026-01-16 22:37:14

The S&P 500's forward 12-month P/E is sitting at 22.2 right now. That's noticeably higher compared to the 5-year average of 20.0, and it's also above the 10-year average of 18.8. What does this mean? Markets are pricing in more optimism than usual—or you could argue valuations have gotten stretched. Either way, it's worth keeping an eye on as we think about portfolio allocation and where equities stand relative to other asset classes.

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DisillusiionOracle

· 15h ago

PE of 22.2... that number reminds me of last year's event Is a bubble coming or is it just a normal correction?

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RetailTherapist

· 15h ago

A PE of 22.2 is really a bit outrageous... I feel like it's just betting that tomorrow will be better. --- To put it simply, it's overpriced, but everyone is pricing in optimistic expectations. --- Wait, can such a high valuation really hold up, or does it depend on whether the company's profits can keep up? --- It's getting more expensive year by year. When will it end? --- So now, is it time to reduce positions or continue to go all-in? That's the real question.

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NFTPessimist

· 15h ago

22.2 PE... is starting to blow bubbles again --- This valuation is indeed a bit crazy, feels like everyone is betting the Federal Reserve won't raise interest rates --- Pushed up to 22.2? I thought it could be held down, looks like I need to reduce my holdings --- They’re pulling this stunt again, said the same thing two years ago, and what happened then? --- So now should I switch to bonds or continue holding onto stocks? No one can really say for sure --- The bubble is coming, everyone, stay alert, stay alert

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HalfIsEmpty

· 15h ago

A PE of 22.2, this valuation ceiling is about to be broken... or is the market just this optimistic?

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