Monday, December 16, 2024

"Sir John Templeton" asset allocation program for 2025

Currently on December 13th, 2024 the MSCI World index https://www.msci.com/world Level link of stocks had increased to 3817 a price 60% higher than two years ago  at 2637 in October 2022


Last year on December 14th 2023 the MSCII World Index PRICE was 3102. An increase of 3102/2637 = 18%. 

In 2024 the increase was 3817/3102 = 23%  which was more than the underlying Value increase which is reflected in the long-term average Price increase of around 8% since 1987.

Based on the table I shared last year you would now be in the 40% zone (3817 is between 3692 and 4058) you might consider (depending on your alternatives and plans) lowering your equity exposure (what you have in stocks like ValueMachinesFund) to 40%.


The program for 2025 includes an increase in the normal zone compared to 2024 of 10% (instead of 7%) because of  3% inflation and an expected increase in the value of companies.





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