Morgan Stanley recommends a “conservative” cryptocurrency allocation for certain portfolios
financial services giant Morgan Stanley has released a guide to the allocation of cryptocurrencies in a multi-asset investment portfolio, and in a report submitted to investment advisors by the Global Investment Committee (GIC) in October, it recommended taking a "conservative" approach.
Morgan Stanley analysts recommend allocating cryptocurrencies to up to 4% in the "opportunity growth" investment portfolio, which aims to achieve higher risk and higher returns.
The report states, "Although the emerging asset class has experienced excess total returns and decreased volatility in recent years, during macro and market pressure periods, cryptocurrencies may experience higher volatility and higher correlation with other asset classes."
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