The DOW, Gold, and Morgan StanleyDOW/GOLDBATS:DOW/TVC:GOLDaddatheriver0808As it turns out, the stock market that appears to be the gift that keeps giving, is actually giving nothing. In reality, when we measure the value of the DOW with real money (Gold) rather than fiat inflationary currency, the markets are crashing down so fast it'll make your head spin. The $NYSE:DOW/TVC:GOLD shows us that what appears to be one of the greatest bull markets in the history of the entire exchange, is actually just one giant melt up fueled by monetary expansion and inflationary action. Morgan Stanley MS recent came out and shared their new edit to their famous 60/40 portfolio arrangement. In this edit, they entertained the idea that inflation was simply not friendly to the client's holdings and that they should actually diversify their positions. Originally, the 60/40 portfolio consisted of 60% equities, and 40% bonds. However, they presume that the future will not bring a passive environment to the boring 40% bonds because, like anyone with two eyes and a brain, they believe that higher inflation lies ahead. Their solution? Get this, to buy Gold. Who would of thought of something so genius? The profound idea that a placeholder of value would hold value and protect you from inflation could only possibly be developed in such a megabank super titan with trillions in AUM. All sarcasm aside though, it might not be exactly obvious to most what this means for gold and bonds. Firstly for bonds, most of which are held in treasuries, we can expect some sort of retail selloff only to be bought back up again by the Fed. So nothing news worthy there. However for our precious gleaming metal, we can expect a continuing bull run as money leaves the debt market and enters into precious metals (again namely gold). We should also be inclined to believe that this should help gold mining companies and give them a nice increase in their stock values over time. Next, we shouldn't expect to much of a move from this in the stock market except the usual volatility and seasonal shifts. Lastly, from this admission from the boys at Morgan Stanley, we can also expect continuing inflation despite what the numbers released by the Fed say. No, the cost of living will not lower. No, the Fed will not raise rates to curb inflation. No, the numbers are never real and never will be. But this does mean that we know what's coming and how to protect ourselves. Here are the possible plays to consider Gold: GOLD (USD/OZ) Stocks: NEM, $B, EGO, EQX, AEM ETF: GDX, GDXJ