Currently the s&p 500 is sitting at a trailing P/E ratio of about 25. Historically, the median trailing PE ratio is about 16. This means, the S&P would still need to drop about 35% to get to the historical median trailing P/E ratio. Your beloved VOO needs to drop to 295$ to be on par with historical P/E ratios. It makes sense why the value investing Warren Buffett still has cash on the side.
With stocks still so over priced, I think it makes sense the tariffs have had such a large impact on prices. I’m sure if Trump queefed too loudly the market would see it as a reason to get get out at these historically high valuations. I would not be surprised if we continue to see some selling until the P/E ratios get back to a somewhat historical levels. Thoughts?