It’s time to lock in bond duration, Ritholtz Wealth Management’s Josh Brown says
Consider adding longer-dated Treasury exposure as bond yields turn higher, says Josh Brown, CEO of Ritholtz Wealth Management. "What's changed over the last couple of weeks is we've made the decision that all things being equal, you don't have as much daylight anymore between let's say a 3- or 6-month T-bill versus a 3- to 7-year Treasury bond ETF," said Brown, speaking on CNBC's"Halftime Report" Thursday. He added that he has made that shift for clients, noting that"we do want to lock in the current relatively high yields.
Duration refers to a bond's price sensitivity to changes in rate policy. Issues with longer maturities tend to have greater duration. Bond prices and yields also have an inverse relationship. "It's not because we think we're at the end of the hiking cycle," Brown said."We are comfortable locking in these rates and not having to worry about eventual rate cuts, whether they start in mid '24, late '24 or beyond."WW shares tumble after Oprah Winfrey says weight loss drugs seem like 'the easy way out.