U.S. interest rates won't rise sharply in the next few months, says Douglas Peebles, Fixed Income CIO for AllianceBernstein, nevertheless, they will move higher in the next few years and investors should adjust their portfolios in advance. Peebles says bond fund owners should "globalize" their portfolios, diversifying across economic cycles. He says investors should also add high yield which does well during a growing economy. Finally, Peebles suggests diversifying bond holdings across sectors.

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