Morgan Stanley's Wilson Calls Gold a 25-Year Bull Market as 60/40 Hedges Falter
Updated
Updated · Kitco NEWS · Aug 17
Morgan Stanley's Wilson Calls Gold a 25-Year Bull Market as 60/40 Hedges Falter
3 articles · Updated · Kitco NEWS · Aug 17
Summary
Mike Wilson said gold has acted as a defensive asset through a 25-year bull market, arguing investors should use it to bolster portfolios after stocks and bonds fell together in 2022.
The Morgan Stanley CIO said tighter stock-bond correlation has weakened the classic 60/40 portfolio's diversification benefit, making commodities and shorter-duration fixed income more useful shock absorbers.
Wilson tied 2026's commodity rotation to Fed liquidity and investor demand for assets that are not traditional equities, citing moves through gold, silver, rare earths, energy and semiconductors.
Morgan Stanley still sees long-term upside in gold, but its strategists warned in June that prices may struggle to reach their $5,200 second-half 2026 target without a rebound in ETF inflows.