By Mehnaz Yasmin

(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 said on Tuesday.

A 60/40 portfolio, which typically has 60% of its holdings in stocks and the remaining 40% in fixed income, counts on moves in the two asset classes to offset one another, with stocks strengthening amid economic optimism and bonds rising during turbulent times.

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-duration Treasuries of five years over the 1

See Full Page