Written by Bryan Lutz, Editor at Dollarcollapse.com:
Another world-changing recommendation by Morgan Stanley this week.
Will it be a big mistake, or contrarian win?
Last month, Morgan Stanley made a historic recommendation.
They tossed the old 60/40 portfolio in the trash and replaced it with 60/20/20.
60% Stocks.
20% Bonds.
20% Gold.
That news was huge not only for the goldbug community, but as a sign of things to come… for everyone.
Since then, gold has climbed over $500.
After Donald Trump’s tweet storm on Truth Social blaming China for their inability to negotiate, Bitcoin crashed about 20%.
The spat was over China’s hoarding of rare earth metals needed for electric vehicles and the manufacturing of defense equipment (missiles – pew pew). Trump slammed China with 100% tariffs across the board.
So gold keeps climbing…
It’s hard to keep track of how many hundreds gold keeps blasting through. As of right now, gold is pushing toward $4200 per ounce ($4146). Last week, we were celebrating what was supposed to be a new benchmark – $4000. But gold isn’t holding back.
Neither is silver, which is also leaving all-time highs in the dust as it closes in on $52 per ounce.
Meanwhile, when you look at smaller bullion exchanges, specifically the physical silver market… It’s shutting down.
***Check below for dollarcollapse dot com preferred pricing on gold and silver via Miles Frankling Precious Metals.
The pendulum swing away from the fiat US Dollar is in full motion. Gold is exactly where it should be. There when you need it, but not for long…
That being said, Morgan Stanley released a recent report, which shifts the world perspective on one more notch into the world of digital currencies.
Morgan Stanley now recommends allocating between 2 to 4% Bitcoin.
Bitcoin Magazine reports:
Morgan Stanley Advises Up to 4% Bitcoin Allocation in Portfolios
“Morgan Stanley released a report advising clients to have a maximum allocation between 2% and 4% of their portfolios to bitcoin and crypto.
The new report, issued on October 1, outlines crypto (primarily bitcoin) allocations based on investor risk profiles.
Opportunistic growth portfolios, which target higher-risk and higher-return strategies, should include up to 4% in crypto, while balanced growth portfolios are capped at 2%, the report read.
The committee who wrote the report characterized bitcoin as a scarce asset comparable to digital gold, suggesting that it now occupies a legitimate role within diversified investment strategies.
“We place the emerging asset class within real assets and focus our commentary here primarily on bitcoin, which we consider a scarce asset, akin to digital gold,” the report read.
While Morgan Stanley acknowledged the asset class’s historical volatility and potential for high correlation with broader markets during stress periods, it also noted that crypto’s total returns and structural maturity have improved in recent years.”
3 thoughts on "Big Mistake Or Contrarian Win? Morgan Stanley Recommends 2-4% Bitcoin Allocation"
BTC virtuality is the answer.
Good Morning Bryan,
Not that my opinion matters one iota here, but I think Bitcoin and digital assets of any kind are really kind of a scam. I may be proved wrong but I say this because I dont truly understand it…I cannot see the intrinsic value of a currency that can be controlled or turned off by a government agency or worse “deleted” by some hacker in the PNOK with a keystroke. You cant eat it, wear it or live in it…so….whats the point? Yes…we are almost in a digital currency age already with the afore mentioned pitfalls and our debit cards and Zelle and lightning quick loan approvals etc…but I do not see Bitcoin as a tangible asset. Having said all that…I am invested in BITW because well… the hysteria driving that market keeps pushing it higher and higher and higher…until this morning that is where I am now down 6.8%. Like the other vultures, I am circling a buying opportunity since the the thought of another Bitcoin run, making a massive 10-15-20,000 point uptick to a new high is intoxicating. However, the lingering fear of a complete collapse and evaporation of the Bitcoin market , for whatever reason, always lingers. Take care-Matt
Thanks for your thoughts, Matt. I think they reflect a lot of what many people are thinking.
OWNB is also worth checking out. Cheers.