What few people seem to think about or be aware of is that a big part of why the market is so overvalued by historical standards is because of all the "free" pandemic money that was handed out. Many people, myself included, did not need this free money and simply invested it into the market. I still don't need it now, so I'm not going to take it out. I do believe the market IS overvalued even in light of this, but you can also view a lot of the "overvaluation" as kind of just an artificial breakage of the average gain of 10%/year due to the FED giving everyone handouts, causing the market to jump more than it would normally since so many people just invested this extra money.
What could happen though, is if inflation stays bad for awhile, people could be forced to start taking money out to cover their expenses, but I'm not sure this is likely to happen. I think a more likely scenario at this point is stagflation, the market being roughly flat for months and no new all time highs for awhile. I would love to see a 20+ percent drop from all time highs, but I just think that is unlikely.