I should also point out that the S&P 500 has a p/e ratio of 25.12 as of today. A good range is 20-25, so prices are at the high end and if we hit a speed bump, well we could be in for a downturn. Not a crash, but a general reduction in stock prices.
Another favorite measurement is the Shiller p/e ratio (which looks back 10 years instead of 12 months) which is at 30.37 when a good range is 10-15. We are way out of range on that one! But given that we are wrapping up a period of high inflation, looking back 10 years could be misleading.
