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Glossary   >   T   >   "The rule of twenty" Definition            The rule of twenty An investing axiom that says the domestic inflation rate plus the P/E ratio of the stock market as a whole should equal 20.If the sum of those two figures is less than 20, the market is cheap; if more, it"s expensive. Glossary    Dictionary Search (powered by Google) WWW ITLOCUS.COM GLOSSARY.ITLOCUS.COM Translate a web page (powered by Google)      to German Spanish French Italian Portuguese Japanese Korean Chinese

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The rule of twenty - An investing axiom that says the domestic inflation rate plus the P/E ratio of the stock market as a whole should equal 20.If the sum of those two figures is less than 20, the market is cheap; if more, it"s expensive.