One-Third Rule

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Dictionary Says

Definition of 'One-Third Rule'

A rule of thumb that estimates the change in labor productivity based on changes in capital per hour of labor. Specifically, the one-third rule states that on average an increase of 1% in capital per hour of labor will result in approximately a 0.33% increase in labor productivity. This rule assumes no changes in technology or human capital.
Investopedia Says

Investopedia explains 'One-Third Rule'

Increases in labor productivity represent increases in real GDP per person, and thus labor productivity can usually be used as a guide to the level of standard of living. Growing labor productivity relies on three main factors: investment and savings in physical capital, technology and human capital. The rule only looks at one factor while holding the other two factors constant. This correlation was first observed by Robert Solow while studying economic growth in the U.S.
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'One-Third Rule'

  • Four-Week Rule Boosts Winning Trades

    http://www.investopedia.com/articles/technical/02/052102.asp
    ... The problem is that most markets trend about one-third of the time. ... (For more, see
    our Trading Systems tutorial.) Using the Four-Week Rule As an example of the ...

  • The Uptick Rule Debate

    http://www.investopedia.com/articles/financial-theory/09/uptick-rule-elimination.asp
    ... In doing so, it suspended the uptick rule for one-third of the stocks in the Russell
    3000 Index while maintaining the rule for the remainder of the stocks. ...

  • 4 Biggest Investor Errors Slideshow | Investopedia

    http://www.investopedia.com/slide-show/investor-errors
    ... When a stock is shooting for the moon, and you begin to sense it's out of control,
    this many be a good time to go for the "sell one-third" or "sell half" rule. ...

  • A Winning Memory-Of-Price Strategy Variation

    http://www.investopedia.com/articles/forex/08/memory-price-variation.asp
    ... with conventional trading, and it follows only a single price entry rule rather
    than ... Enter long the full position (two units) when price falls one-third of the ...

  • Four Big Investor Errors

    http://www.investopedia.com/articles/stocks/07/whentosell.asp
    ... higher it can possibly go. This many be a good time to go for the "sell
    one-third" or "sell half" rule. This way, you can take some ...

  • 3 Consumer ETFs To Consider

    http://stocks.investopedia.com/stock-analysis/2011/3-Consumer-ETFs-To-Consider-XLP-VCR-ECON-PG-WMT-DIS0526.aspx
    ... NYSE:VCR) is made up of 369 stocks and the stop 10 make up one-third of the ... A general
    rule is that during a strong bull market XLP will lag with VCR and ECON ...

  • Analyzing Chart Patterns: Cup And Handle | Investopedia

    http://www.investopedia.com/university/charts/charts3.asp
    ... If the handle is downward moving, the general rule is that the handle's downward
    movement can retrace one-third of the gain made in the right side of the cup. ...

  • A Look At IRA Separate Accounting Rules

    http://www.investopedia.com/articles/retirement/04/090804.asp
    ... The following example illustrates the rule: Advertisement - Article continues below ...
    For instance, a beneficiary that inherits one-third of the account receives ...

  • Debt Ratios: Overview Of Debt | Investopedia

    http://www.investopedia.com/university/ratios/debt/ratio1.asp
    ... Lastly, as general rule, two-thirds (roughly one-third goes to interest expense)
    of the outstanding balance of operating leases, which do not appear in the ...

  • Winning The Target-Date Fund Battle

    http://stocks.investopedia.com/stock-analysis/2009/Winning-The-Target-Date-Fund-Battle-TROW-MFC-AB-PFG-WFC0605.aspx
    ... Transition (OTTAX) fund lost 41% last year, even though almost one-third of its ... Whatever
    happened to the old rule of thumb, "100 minus age" when calculating ...

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