Simple Value Strategy

What do you think of this simple index-investing strategy:

Universe:
- US
- Emerging Markets
- Developed Europe
- Developed Asia

Strategy:
- Hold only markets with CAPE < 25

The markets that qualify are weighted based on the CAPE earnings yield:
(1/CAPE) - 3%.
A market with CAPE 20 will get weight 2 ((1/20) - 3%). A market with CAPE 16.7 will get weight 3 etc.

- Put max 60% in one market. If no markets qualify, hold 100% cash. If one market qualify, hold 40% cash.
- Rebalance every 3 or 6 months.

What do you think?
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