Interest rates are ultimately moving higher despite their stickiness in the past few months, and investors need to reduce the duration of their bond portfolios, says Steve Sachs, Head of Capital Markets at ProShares. Sachs says while the "rising rate trade" is garnering a lot of attention, it's not overly crowded yet because we have not seen a bond bear market in the US in decades. Finally, Sachs says the improvement in the economy is keeping fund managers focused on interest rate, not credit risk.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

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