Even if the Fed doesn't hike rates now, it will soon and portfolios should be adjusted, investment pros say.
"I think if you're thinking 12-to-18 months or longer, it's not a question of if, it's when. And the market is overly preoccupied with September versus December," said Leo Grohowski, chief investment officer at BNY Mellon Wealth Management.
As a result, Grohowski has been recommending whittling back on fixed income in portfolios as the Fed moves into a rate hiking cycle. "We've been under-weighting fixed income in general. Within fixed income, we're obviously staying short duration. We're using floating rate high yield as an example of one tool in the toolkit that will help portfolios in a rising rate environment," he said.