Forward Pe ratios as at 24 May 2022. Small cap forward PE ratio...

Forward Pe ratios as at 24 May 2022. Small cap forward PE ratio continues to haemorrhage to peak fear levels seen only at Great Recession (GFC) and Covid crisis (imminent world shut down and cessation of trade). Compare the SP600 PE ratio chart to a chart of DW8 SP and you get a correlation score very close to 1. While there is pain in the SP decreasing, it does help get through this period knowing that the issue lies in extrinsic market forces their application of a PE multiple to the investment, rather than something that the business has done wrong...
The market is always mean reverting- meaning since we have had the pendulum swing to levels of great excess (DW8 @ 300x +) then we will have to see it trade at levels representing total disinterest (3x)- in order for mean reversion to occur. Notice in diagram- we traded at the red line- peak froth, and now trade at the black line- peak fear: we can notice too that over the past 20 years, the amplitude of the wave from its rest (mean) position is generally equal/ mirrored to the up and down sides. Current holders have done nothing wrong holding- macro investing is stupid and I dont know of many FM who get it right- especially on sell / short side.