Touchstone's Thomas: Despite rate hikes, start increasing duration now

Money Life with Chuck Jaffe

Crit Thomas, global market strategist at Touchstone Investments, acknowledges that he is giving potentially controversial advice in suggesting that with interest rates still rising investors might look to buy longer-duration bonds, but he thinks that rates will peak soon and that investors who stay completely focused on short-term bonds will find themselves with significant re-investment risk -- the chance that they will be looking at lesser returns when bonds mature -- in a year or two. While he is not going way up the maturity scale, Thomas is looking to position both fixed-income and equity portfolios for a recovering and changed market and economy in the next two years. Also on the show, Chuck discusses the relative success -- or lack thereof -- that active managers have had in beating their passive benchmarks this year with Tim Edwards, managing director of index investment strategy, S&P Dow Jones Indices, discusses the rising percentage of Americans with long-term credit-card debt -- at just the wrong time to have it -- with Ted Rossman of CreditCards.com, and these strange times we are living through call for some "Weird Financial News" with stories about Elon Musk, donkey penises and more.