SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: da_cheif™ who wrote (167)4/30/2020 10:26:55 AM
From: ajtj992 Recommendations

Recommended By
kimberley
skier31

   of 97962
 
Rule of 20 from Investopedia:

Rule of 20
Somewhat similar to the Rule of 18 is the Rule of 20, a calculation that attempts to discern if the equity market is fairly valued. The Rule of 20 suggests that stocks are fairly priced when the sum of the stock market’s P/E and the rate of inflation are equal to 20. Anything above 20 means that stocks appear to be getting expensive, while anything below 20 suggests that stocks are attractively priced.

Rule of 20 trailing earnings has a 97.9% correlation with the S&P 500 price since 1957 (my input).
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext