According to @charliebilello, the S&P 500 P/E ratio has risen to 26, which is 31% above the 1989-onward average of 19.8, marking a third consecutive year of multiple expansion; the figure uses trailing 12‑month operating EPS with Q4 EPS estimated. Source: @charliebilello on X https://twitter.com/charliebilello/status/1996982319110914402 For trading, the reliance on estimated Q4 operating EPS puts focus on upcoming earnings updates and revisions that could shift the index’s multiple trajectory. Source: @charliebilello on X https://twitter.com/charliebilello/status/1996982319110914402 Crypto angle: shifts in US equity risk appetite can spill over to digital assets, and research shows BTC and stocks have exhibited higher correlation since 2020, heightening cross-asset sensitivity. Source: International Monetary Fund, Crypto Prices Move More in Sync with Stocks, Jan 2022 https://www.imf.org/en/Blogs/Articles/2022/01/11/crypto-prices-move-more-in-sync-with-stocks-posing-new-risks

According to Brad Freeman (@StockMarketNerd), the key to sustained trading success lies in identifying high-quality companies, consistently reassessing their fundamentals, trimming positions during excessive multiple expansion, and adding during multiple contraction. Freeman emphasizes the importance of remaining mostly invested while avoiding reactionary decisions to daily market headlines (source: Twitter, May 21, 2025). This disciplined approach aligns with crypto market best practices, where strategic portfolio adjustments based on valuation cycles are critical for maximizing returns and minimizing drawdowns.