Morgan Stanley Now Recommends 4% Crypto Allocation for Growth Portfolios

• For balanced growth portfolios, Morgan Stanley suggests a more modest 2% allocation
• Wealth preservation or income-oriented portfolios should remain at 0% allocation to crypto, given its volatility and correlation risks
• The recommendation goes out to about 16,000 Morgan Stanley advisors who handle a massive $2 trillion for their clients

Morgan Stanley’s Global Investment Committee (GIC) advises up to 4% exposure to cryptocurrencies for growth or opportunistic portfolios. For balanced growth portfolios, it suggests a more modest 2% allocation.

However, the committee explicitly cautions that wealth preservation or income-oriented portfolios should remain at 0% allocation to crypto, given its volatility and correlation risks.

Interestingly, GIC describes Bitcoin as digital gold, pointing to its limited supply and role in protecting against inflation as key strengt…

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