ryanthe4aces

Hey everyone, I’ve got a theory on why the stock market’s been tanking since President Trump dropped those global tariffs, and why it’s actually a *good* thing in the long run. The S&P 500 was riding high, peaking around 6,100 with a crazy P/E ratio of 27, way above the historical norm of 15-17. That’s like the market was pricing stocks as if they were as safe as government bonds, betting Uncle Sam would swoop in with bailouts no matter what. But those tariffs threw a wrench in that fantasy, and now the market’s waking up. Instead of panicking, I think this is the start of a healthy reset that’ll make things better for all of us.

Here’s the deal: that sky-high P/E of 27 meant stocks were overvalued, with prices out of whack compared to what companies were actually earning. Investors got cocky, throwing cash at anything with a ticker symbol, assuming the government had their back. But tariffs mean higher costs and slimmer profits, and suddenly, nobody’s so sure about those bailouts. The market’s now scrambling to find a more realistic P/E, closer to the historical average of 15. This shakeout is painful, nobody likes seeing their portfolio bleed, but it’s like clearing out a cluttered garage. It forces money to flow to companies that deserve it, not just the ones riding the hype train.

Let’s break it down with some quick math to see where this might land. At its peak of ~6,100, the S&P 500 had a P/E of 27, which means earnings were about 226 (6,100 ÷ 27). If the market corrects to a P/E of 15, keeping those same earnings, the S&P would settle around 3,390 (226 × 15). That’s a big drop, about 44% from the top, but it’s not the end of the world. It’s the market getting back to reality, pricing stocks based on what companies actually produce instead of blind optimism. Sure, it stings now, but this kind of reset stops the bubble from growing until it pops way worse later.

Why’s this a win? Because a market with a sane P/E rewards good businesses, the ones innovating, growing, and delivering real value. Right now, too much cash is tied up in overpriced stocks that don’t justify their valuations. This correction, sparked by the tariff shock, is like hitting the refresh button. It’ll hurt short-term, no question, but long-term, it means capital goes where it’s most effective, building stronger companies and a healthier economy. So yeah, the market’s rough, but I’m betting this rebalance sets us up for something better.

What do you all think?

I don’t get what you mean I did not downvote. I like the topic. I don’t post much so let me know if I am doing something wrong.

I was thinking how we could truly attract the best. Surely the best are worth a lot on the open market.

Here is my proposal.

$100k min salary starting at age 20.

Needs to increase by $10k minimum until 35. So at 35 if you’re not making $250k you got to go back.

This allows truly exceptional people to come in and prevents abuse of low cost wages to suppress American workers.

Also - once in an h1b visa you can switch companies easily as long as new company hits wage requirement.

I hope they use a new theme.

Even in hypotheticals Bama gets all the breaks!

His face looks different

This LSU team would probably beat all his ND teams. He just doesn’t know what it’s like to coach a better team.

Immediately become top conference in top 3 sports. Footprint works.

SW thought LR was coming until Saturday.

On the non cancled stamp:

Stamps are not always canceled on non profit or presorted mail.

The USPS would require the mail to presorted (and that is one explanation of the barcode).

Hopefully this provides some clues on whoever wrote this horrible letter to Sumlin. The number of people that have access to non profit and presorted mail is much more limited than the general population.

Hoping this is not a repost!