In the stock market, PE multiples would decrease because a dollar of earnings would be worth less due to higher interest rates. Value investors know the stock market has a split personality. For the sake of this discussion, let’s personify “stock prices” as Mr. Market. Mr. Value gets little attention because what he does is measured in years, if not decades. Though he toils in near obscurity, Mr. Value can be counted on to get up and go to work every day.

Source: Forbes February 04, 2017 05:15 UTC