The most recent market bottom occurred on October 12th, when the S & P 500 closed at 3,577.
At the time, analysts were quite optimistic about 2023 earnings, expecting them to come in at $239, up almost 8% from the 2022 earnings estimates.
That translates into a forward multiple (P/E ratio) of 15 times 2023 earnings.
Other strategists have also noticed that the S & P 500, despite a 20% drop in 2022, is still trading at a rich valuation.
Instead of $237, estimates are now $229, and the multiple is now 16.7 times forward earnings.