S&P 500's forward 12-month P/E currently sits at 22.2—notably elevated compared to historical benchmarks. The gap is telling: it's running 2.2 points above the 5-year average of 20.0, and 3.5 points above the 10-year average of 18.7. When valuations climb this decisively above their longer-term range, it typically signals either sustained earnings growth expectations or potential overextension risk. For crypto portfolio managers tracking traditional equity markets, these signals matter—they often correlate with broader capital allocation patterns and risk appetite in the digital asset space.