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

Image of Lyle Stein

President, Forvest Canada

Lyle Stein

Mr. Stein is a Bay Street veteran of over three decades. He has been a top-rated sell-side analyst, an award-winning mutual fund manager, an entrepreneur, a CEO, and a director of both public and private companies. He brings the wisdom and experience those gathered over those various positions to each of the private client portfolios he manages. Mr. Stein is a CFA charter holder and has degrees in Economics from the University of Wisconsin (BS) and University of Toronto (MA).

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