A Short-Lived P/E-Led Bear Market?

Investors have slashed the forward P/E of the S&P 500 since the start of this year, resulting in a 14.0% drop in the S&P 500 stock price index from its record high on January 3 through Friday’s close. Meanwhile, industry analysts collectively have been raising their 2022 and 2023 revenues and earnings estimates:

(1) S&P 500 forward revenues per share is up 5.1% ytd to yet another record high of $1,749.