Part 5/10:
Morgan Stanley's Chief Investment Officer recommends moving away from the 60/40 paradigm altogether. Instead, they suggest a new mix: 60% stocks, 20% bonds, and 20% gold. The rationale is that gold has historically demonstrated resilience, especially during inflationary periods, outperforming traditional bonds as a diversification tool.
Ray Dalio's Viewpoint
Legendary investor Ray Dalio, founder of Bridgewater Associates, advocates for holding as much as 15% of a portfolio in gold. Currently, most individual portfolios allocate less than 1% to gold—a stark contrast that underscores how institutional views are evolving.