Background:
Sir John Templeton used to give his clients a yearly program at the beginning of the year. If at the end of the year the Dow Jones had increased significantly, they should lower the percentage of their wealth held in stocks. On the other hand, if prices have become more attractive it makes sense to increase the percentage held in stocks AFTER stock prices have decreased.
As Warren Buffett puts it: “I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.”
Since December 16th, 2020 two years ago the MSCI World index https://www.msci.com/world (USD) has decreased from 2645 to 2637.
Last year from December 16, 2020 to December 14, 2021, the index increased 18% to $3130. The "Templeton" program called for a decrease in stock exposure to 30%-35%:
According to the updated John Templeton re-balancing program made in 2021, your percentage of wealth allocated to stocks today should increase to 60%.
(See the top "60% Maximum in Stocks" row between 2566 and 2864, that is where 2637, the current level of the MSCI World index, fits.
Personally, I did not invest in www.ValueMachinesFund.nl last December. Now I increased my position in the fund which is 100% invested in stocks during the summer and now again by a substantial amount.
PROGRAM FOR DECEMBER 2023
The program for 2023 includes an increase in the normal zone compared to 2021 of 10% because of inflation and an expected increase in the value of companies.
For Europe long-term in Euros and with expenses a fund could be? https://www.fidelity.nl/fondsen/factsheet/IE00BYX5NX33/tab-overview
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