Since the Iran war began on February 28, gold prices have dropped an incredible 18% and slipped into bear-market territory, while the S&P 500 has held relatively stable. Morgan Stanley is monitoring the value of this metric in the S-P 500-to-gold ratio, which has surged nearly 12% since the conflict started. The bank's Chief Equity Strategist Mike Wilson praised this move as "one of the more constructive recent market developments." The shift cuts the popular narrative that markets are downplaying geopolitical risk. Wilson also noted that the increase in the ratio is a sign that the cadence of U.S. economic and earnings will likely remain constructive throughout this conflict.