Valuation? No, its not on thin ice.

Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.
– Peter Lynch

There has been much discussion these days about valuations within equity markets, specifically as it pertains to the trailing price/earnings (P/E) ratio of the S&P 500. At the time of writing, the trailing P/E sits at 32 times, well above its longer-term average of closer to 18. However, does that mean an immediate reversal is warranted?

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