As regards equity valuations, the Market should at some point revert back to historical norms.
P/E ratio is a simple metric, and some will dismiss it. But a -35% drop from here would not be that outrageous. If the Fed is busy tightening, can Powell still prop up equities? Punchbowl removal, Russian aggression, inflation, asset bubbles, etc.
The stage is set for a volatile 2022.
Current S&P 500 P/E Ratio: 24.1
(Feb 23, 2022)