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 Glossary   >   R   >   "Rule of Eighteen" Definition   

        Rule of Eighteen

A rule whereby the sum of the inflation rate and the P/E ratio of the Dow Jones Industrial Average is an indicator of the direction of the stock market. If the total is above 18, stocks are supposed to decrease. If the total is under 18, then the stock market is expected to increase.

Rule of Eighteen


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Rule of Eighteen - A rule whereby the sum of the inflation rate and the P/E ratio of the Dow Jones Industrial Average is an indicator of the direction of the stock market. If the total is above 18, stocks are supposed to decrease. If the total is under 18, then the stock market is expected to increase.


Rule of Eighteen : a rule whereby the sum of the inflation rate and the p/e ratio of the dow jones industrial average is an indicator of the direction of the stock market. if the total is above 18, stocks are supposed to decrease. if the total is under 18, then the stock market is expected to increase.