Interesting graph.
It shows how in deep recession the backward facing PE can go to the moon, but that doesn't mean much because earnings rebound strongly. Looking backward in bad times is the wrong thing to do because bad times do not last. Todays' PE of 32 is not predictive because the 2022 environment will be so much different than the 2020 environment.
Seems to me focusing on the backward facing PE rather than the forward facing PE is not wise.
It makes you think that investors have lost their minds and don't pay attention to fundamentals anymore.
Well, this graph shows investors do pay attention to fundamentals. The earnings companies will have the following year. Not the past year. As it should be. And of course this is one of the problems of focusing on CAPE, as so many do. With CAPE you aren't looking at just one year of past earnings...you are supposed to care about earnings a decade ago. Fundamentally problematic.
https://twitter.com/LizAnnSonders/status/1386631818296893440?s=20