The 'Rule of 20' shows the stock market is still expensive despite recent corrections: Strategist
Lyle Stein, president of Forvest Global Wealth Management Inc., joins BNN Bloomberg to discuss the valuation gap in the stock market. Stein follows the Rule of 20 to show the audience that when inflation goes up, interest rates must rise and the P/E valuations for stocks must go down. He notes runaway inflation will force central banks to continue hiking rates and stock valuations will keep falling.
Source: BNN Bloomberg