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- Generative AI could change the 60/40 portfolio strategy, according to Morgan Stanley.
- That's because AI will boost productivity, changing the growth/inflation relationship and the stock/bond correlation.
- "Technology diffusion acts like a supply shock, boosting growth and often reducing inflation in the short run."
The latest corner of your life warped by generative AI? Your investment portfolio.
According to Morgan Stanley, the AI boom has the potential to change a core tenet of investing for the basic, moderate-risk investor: the 60/40 portfolio.