After 60/40 Portfolio Fails, Gold Takes "Defensive Center Stage"? Morgan Stanley's Wilson: 25-Year Bull Market Not Over Yet

Morgan Stanley Chief Investment Officer Mike Wilson believes that the "stock-bond double whammy" in 2022 exposed the defensive limitations of the traditional 60/40 portfolio. As the correlation between stocks and bonds rises, investors need to seek new risk-hedging tools, giving gold higher allocation value. The bank expects the Federal Reserve to cut interest rates once each in January and March 2027. If this path materializes, ETF inflows could return to the gold market.