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.
Do you have a need for income? Should you own some fixed income securities even though they lower your long-term return?
Sir John Templeton: "The very nature of investment counsel is to make a tailor-made program to suit the owner. And after working as an investment counselor for forty-four years. I have come to the conclusion that literally everybody has the same objective. And the objective is to produce the maximum total return, net after taxes and inflation." ..."Now the reason that is important important in replying to your question is that you should not say that a retired person needs a fund that pays a high dividend. What you want for any person is the fund that is going to produce the maximum total return. , because you can spend part of the gains just as if they were ordinary income."
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