To be honest, this market correction has been a long time coming. The index PE ratio had been in the 20-25 range. This translates to a paltry earnings yield of

To be honest, this market correction has been a long time coming. The index PE ratio had been in the 20-25 range. This translates to a paltry earnings yield of 4-5%. Far below its historical range. Investors had been ignoring this fact because bond yields are so low, and they figured increases in the PE ratio will make up for the paltry yields. But that's clearly not sustainable in the long run. At some point this bubble was bound to burst, which is exactly what happened. Today, the PE ratio is closer to 15, similar to its historical value. In overseas markets, the PE ratio is even lower than that. We may still see some further drops due to investors fears, but short of Trump kicking off a full blown global trade war, I doubt we'll see anything like a 2000/2008 meltdown.