Business, Legal & Accounting Glossary
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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This glossary post was last updated: 16th November, 2021 | 0 Views.