Rule Of 18

Business, Legal & Accounting Glossary

Definition: Rule Of 18


Rule Of 18


Full Definition of Rule Of 18


An indicator of the general direction of the stock market based on the rate of inflation and the price to earnings ratio of the Dow Jones Industrial Average. To apply the rule of 18, add the rate of inflation and the P/E ratio of the Dow. If the sum is more than 18, the market is expected to decline. If the sum is less than 18, the market is expected to go higher.


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Definition Sources


Definitions for Rule Of 18 are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 16th November, 2021 | 0 Views.