Joel Litman: The “Rule of 18” Will Never Hold True Over a Long Period Of Time
A rule of 18 or 20 or 21 will never hold true over a long period of time. Too many other variables determine how cheap or expensive the market is – including taxes, average returns, credit factors, and more. This is why at Altimetry, we don’t just focus on that simple rule, but instead look at things in a broader context.