When stocks go down, bonds go up, or bonds always go up, so they offset each other, which doesn’t take into account the possibility of stagflation, which means that stocks go down and bonds go down and gold goes up. But anyway, he has now changed from a 60-40 portfolio to a 60-20-20, where you have 60% stocks, 20% bonds and 20% gold. So the other 20% that used to be in bonds is now in gold, according to chief investment officer of Morgan Stanley, some guy named Wilson. Wilson! Wilson! Wilson! Wilson! So that means that the money that is going into gold is coming from bonds, which means that interest rates will go higher as investment banks follow each other with these recommendations because they are all a bunch of lemmings and they follow each other.

My point is that they just, they follow each other because that’s how the business is. So Morgan Stanley is the first big investment bank to come out with this publicly. It’s going to be followed by many others, so let’s take a look at this article and then take a look at how much money would be going into gold if this CIO of Morgan Stanley is to be taken seriously. Here we have your article for Reuters. Morgan Stanley CIO favors 60-20-20 portfolio strategy with gold as inflation hedge. This is by Magneze Yasmin, who I don’t know what country he’s from or she’s from or whatever, but you have here these gold bars with those serial numbers, isn’t that beautiful? We have gold bars.

Mmm. Mmm. Mmm. Don’t they look good? I’d just like to have some of those gold bars. Mmm. Mmm. It’s about gold. So here we’re going to read the first three paragraphs. Look at the points. September 16th, Reuters. A 60-20-20 portfolio strategy that includes 20% gold is a more resilient inflation hedge at a time when U.S. equities are offering historically low upside-over treasuries and investors are demanding higher yields for long-term bonds. Morgan Stanley Chief Investment Officer Mike Wilson. Wilson! I’m sorry! I’m sorry, Wilson! Said on Tuesday, a 60-40 portfolio strategy gets 60% of its holdings in stocks and the remaining 40% in fixed income, which means debt, counts on moves in the two asset classes to offset one another, meaning one goes up, the other goes down.

That’s how it normally is unless there’s stagflation in the currencies imploding, which is probably what’s happening now, which is why the CIO of Morgan Stanley is recommending 20% gold because he sees the currency in collapse. He’s not going to say that, but that’s what he sees. Anyway, continue with the sentence. With stocks strengthening amid economic optimism and bonds rising during turbulent times, that’s how it’s supposed to be with the 60-40, but it’s not anymore because the currency is in collapse. Wilson, however, favors a 60% allocation to equities and 20% each to fixed income and gold within bond markets.

The prominent Wall Street bear prefers shorter-term duration treasuries of five years over the 10-year note to capture rolling returns along the yield curve. Gold is now the anti-fragile asset to own. Do you know why gold is the anti-fragile asset to own? Because it’s money. If Morgan Stanley understood that, they would have had some gold before it reached all-time highs and above. How can you reach above all-time highs? Whatever. But now they’re jumping in. You’ll see other investment banks jump in. So let’s take a look at how much money we’re talking about if Morgan Stanley is going to shift its 60-40 portfolio where its clients are now to a 60-20-20.

How much dollars? How many dollars is that? And before you tell me, well, they probably already did this role, so they wouldn’t be announcing it. Yeah, let’s assume that’s true. That still means that other investment banks that are bigger than Morgan Stanley are going to follow eventually and probably pretty damn soon. But let’s look at these numbers. Morgan Stanley’s annual report 2024, and it says here, look at this, investment management. A-U-N, that means assets under management. How many dollars worth of assets are under its management in these 60-40 portfolios that will end up being 60-20-20 portfolios? That is $1.666 trillion because it says 1,666.

And you see here, here’s the parentheses, billions. So $1,666 billion, 20% of that. That comes to… $332.3 billion. Yeah, okay, so $333 billion. Let’s assume that all went into gold already. So we have other banks that are bigger, like J.P. Morgan and Bank of New York. I don’t think that’s bigger than Morgan Stanley, but whatever, you have big banks. And obviously, all other banks, and they’re going to follow Morgan Stanley eventually. So the 60-40 portfolio is going to become the 60-20-20 portfolio, and all the investment banks are going to invest, if they haven’t yet, 20% into gold.

And as they realize that stocks and bonds are both crashing, they will plow more and more dollars into the gold market, which is why gold is at all-time highs. It’s not the only reason why, but you could ask me the question, is it time to sell? Is it that it is silver and gold? Are they really outperforming the S&P 500 now? No, this is just the beginning. This is the silver to S&P 500 ratio. You can see here that from 2000 to 2011, silver did handily outperform the S&P 500, but since 2011, when we last hit $50, the S&P 500 has vastly outperformed silver, also gold, and we haven’t even broken through a trend line, which would start at 2016 over here, tagged it in 2020, and it has not been hit yet.

So this has been the rally from whatever this tiny number is to whatever this tiny number is, .007, and I’ve shown you this chart in other videos, and also I cover it on my Substack on endgameinvestor.substack.com, where the all-time high and silver relative, the S&P was something like .44, and here, if you take that into account, this number of about .04 is barely registered on the graph, but here, really, this is really nothing. This is nothing, because if you invested in the S&P 500 and only just bought the SP 500 ETF, month after month reinvesting dividends, you would have vastly outperformed silver since 2011, even since 2008, and even since I think you would have tied for about 2006, whether you invested in the S&P 500 or silver, you probably would have outdone silver with the S&P 500 because S&P 500 will give you dividends, whereas silver won’t, unless you have a silver and gold account with monetary medals, which you can find a link in the description down below.

But anyway, the point is, the rally has barely started yet, and people won’t panic out of their stocks and panic into gold and silver until they realize that gold and silver are vastly outperforming the S&P 500. We will get there. We might get there sooner than you think, but right now, this is not a panic. This is just the investment banks that are starting to look in the other direction and starting to think that maybe gold is an inflation hedge, and the secret really is, gold is not an inflation hedge.

It’s simply money that isn’t inflated because money can’t be inflated. Derivatives of money can be inflated by inflating their number over the money supply, which is the gold and silver supply, but gold is not an inflation hedge. It’s just money. That’s it. So what are we going to see? We’re going to see interest rates go up as investment banks sell some of their debt, some of their treasury debt, and buy gold with the proceeds, and that is why interest rates are going to head up, and that’s going to affect stocks negatively, and as their stock and bond portfolios continue to underperform the metals and the money itself, they will continue to sell their bonds and their stocks and pile into gold and silver over time.

How much time? Not that much time. This is the beginning of the end as the mainstream recognizes the hole that it is in as the gold and silver bugs wave to them from the ground level and encourage them to keep digging to get themselves out of their hole. This is Ralphie, the Endgame Investor. You can support this channel by getting a Dirty Man Safe Use Code Endgame 10 to check out for 10% off. You can get your gold and silver with Myles Franklin. Link in the description below and mention the Endgame Investor, and if you want spiritual lessons in gold and silver and economics, check out my Patreon, patreon.com slash Endgame Investor, and you will get a weekly spiritual lesson in money, economics, government, and all the other stuff in the holy writings given to the prophets of Israel.

Well then, I’m sorry! I’m sorry! Well then! I can’t! Well then! Well then! Thanks for watching!
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