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 optimal duration for a fixed income portfolio mentioned in the text?

What are the potential risks mentioned regarding the Fed's interest rate hikes?