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Pay attention to your fixed income portfolio, Calstrs chief Christopher Ailman says

Investors and retirees alike will have to take note of their fixed income portfolios, as the country anticipates higher inflation and interest rates under a Trump administration, Calstrs' Chief Investment Officer Christopher Ailman told CNBC on Wednesday.

Appearing on CNBC's "Squawk on the Street," Ailman said that the 10-year and three-year U.S. Treasurys have been in a channel, or trading in a specific price range, for over 30 years — a trend that inflation could seriously disrupt.

"I think you're really seeing a change of a 30-year time period of declining interest rates to more rising and normalizing interest rates," Ailman said. "If they break out of that [trend], that's going to be a huge shift and people have to pay attention to their fixed income portfolios."

But profound as a breakout like that would be, Ailman, who oversees a $192.9 billion investment portfolio at the world's largest educator-only pension fund, advised investors not to get too hasty.

"Wall Street's gotten very excited about a change in government, but we haven't seen anything yet," he said. "I think the markets have gotten a bit ahead of themselves. I like the trend, but I think we're going to see more of a flat market once we get past January."