Morgan Stanley's Caron Says He's Buying Short-Term Bonds

The video discusses investment strategies focusing on hoarding cash and short-term financial assets as a diversifier. It highlights the benefits of cash and cash-like instruments, optimal duration for fixed income portfolios, and the uncertainty surrounding Fed interest rate hikes. The speaker suggests a three-year average duration for portfolios, with a focus on short-term assets, due to potential interest rate changes.

What is the primary reason for hoarding cash and avoiding rallies according to the speaker?

• Due to market uncertainty

• To maximize short-term profits

• To invest in real estate

• To avoid paying taxes

Which type of financial assets does the speaker consider a good diversifier?

• Real estate

• Short-term high-quality fixed income assets

• Cryptocurrencies

• Long-term bonds

What is the suggested average duration for a fixed income portfolio?

• One year

• Two years

• Three years

• Five years

How does the speaker suggest achieving the optimal duration for a fixed income portfolio?

• By balancing short-term and some longer-term assets

• By focusing solely on cash

• By avoiding all financial markets

• By investing only in long-term assets

What terminal interest rate level does the speaker predict?

• 4%

• 3%

• 6%

• 5%