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Morgan Stanley’s 60/20/20 Model: A New Investment Strategy
Robert Kiyosaki, the bestselling author of Rich Dad Poor Dad, has criticized the long-standing 60/40 investment formula, which advocates allocating 60% to stocks and 40% to bonds. In a recent post on X, Kiyosaki described the strategy as outdated and no longer effective in today’s economic environment.
Why the 60/40 Formula Is Losing Relevance
The 60/40 formula was designed to balance risk and return for long-term investors by diversifying between equities and fixed income. However, Kiyosaki argues this approach has lost its validity since the U.S. abandoned the gold standard. He stated, “The 60/40 rule died when the former U.S. President ended the gold standard,” turning fiat currency into what he calls “fake money,” as governments began unlimited printing.
Kiyosaki also raised concerns about bonds, pointing out that they represent government debt, and governments are essentially “bankrupt.” He emphasized that both stocks and bonds now rest on “shaky ground.”
Introducing the Morgan Stanley 60/20/20 Alternative
As an alternative, Kiyosaki highlighted Morgan Stanley’s 60/20/20 allocation model, which splits investments into 60% stocks, 20% bonds, and 20% gold. He underscored gold’s enduring security, writing, “The facts are gold has outperformed stocks and bonds for years….but no one said anything.”
Kiyosaki favors tangible assets such as gold, silver, Bitcoin, and Ethereum, explaining that these hold intrinsic value and can help build wealth through real assets that generate cash flow.
Digital Assets and Market Volatility
In the past 48 hours, Kiyosaki has also promoted Bitcoin and Ethereum, citing concerns over the weakening U.S. dollar and the long-term risks of holding cash. Despite this, digital assets remain volatile. As of press time, Bitcoin is trading at $121,396.33, down 1.13% in 24 hours, with a 28.49% drop in trading volume. Ethereum also declined 3.21%, currently priced at $4,343.70.
Kiyosaki’s views reflect growing skepticism about traditional financial systems amid rising debt and currency instability, highlighting a shift toward alternative assets.
