According to Compounding Quality on Twitter, an investor who bought the S&P 500 at a price-to-earnings (P/E) ratio of 5.3x in 1917 and sold at a P/E of 34x in 1999 would have achieved an 11.6% annual return, with only 2.3% per year attributable to P/E expansion. The majority of returns stemmed from earnings growth and reinvestment by the underlying companies (Source: Terry Smith via @QCompounding, May 28, 2025). This highlights the crucial role of fundamental growth over valuation multiples, a lesson relevant for crypto traders assessing the importance of utility and network growth versus speculative multiple expansion in digital asset markets.

According to The Kobeissi Letter, the daily S&P 500 returns fluctuate depending on which Trump Administration official is speaking. This analysis suggests that investors should closely monitor public statements from key officials to anticipate market movements. For example, speeches from economic advisors may lead to more significant market shifts, providing traders with opportunities to adjust their strategies accordingly.