📉 This selloff looks much smaller than last year.

But the valuation reset is telling a very different story.

Last year, the S&P 500 saw a price drawdown of -18.9%.

This time, the max drawdown has only reached -9.1%.

At first glance, that sounds far less painful.

But here what really matters 👇

📊 Forward P/E has already compressed by -18.4%.

Last year, the valuation pullback was -19.5%.

So even with a much smaller price decline, the market has already gone through almost the same multiple reset.

That means the surface looks calmer than the underlying repricing actually

is.

In simple terms:

⚠️ Price damage has been lighter, but valuation damage has been nearly identical.

And that matters.

Because when multiples compress this aggressively without an equally deep index drawdown, the message is clear:

🧠 the market is repricing expectations fast.

The real question now is not just how far price has fallen.

It is whether earnings can hold up enough to justify what still remains.

Price tells you what happened.

Valuations tell you what the market now believes.

❓What do you think matters more here: the drawdown... or the repricing?

#SP500#Stocks#Investing#Macro#Valuations#MarketOutlook