of cash? i know blackrock has been holding and usually higher level of it. how have you maneuvered in that space? jeffrey: every portfolio management team runs -- ours, we have run higher cash levels as a way to reduce some of the risky asset exposure. the other issue that all investors are facing in this summer environment, it has been an exceptionally illiquid environment, very expensive to trade, using cash, as opposed to other means to bring your risk down. reducing your transaction cost, retaining value for our investors. tom: what do you do on duration? you are a meeting, yelling and screaming will soon. what is the duration call?

what is the duration call? jeffrey: i will speak for our team. as you highlighted, a lot of different voices. you will hear from different voices in the next hour. it is still a cautious view on duration. that is the view of the uncertainty of inflation. markets are pricing in certainty. we will have a clean path to 2%. we are more skeptical of that being realized. if it is not realized and you end up with higher inflation, risk premium needs to adjust higher. you have to be more defensive on duration without uncertainty. tom: jeffrey rosenberg, thank you. futures -40. dow futures negative 222. lisa: before this payrolls report we were fluctuating between gains and losses. the reaction was so fierce and quick, it was very clear.

jeffrey: we are a little bit skeptical of the rally that we have seen in risky assets. we are still concerned that you have a shock in terms of inflation, what we are talking about here today with what the fed has to do in front of that, tightening financial conditions not conducive for risky assets. we have been pulling back from our risky assets position, did not add during the rally in july. it's important to recognize that when you're in bear markets, they don't go straight down. bear market rallies, which many are characterizing the last up move. a little concerned that we are in the consensus camp there, but all the data is pointed to considerable challenges to the risky asset profile going forward. a little more cautious view. lisa: what about your portfolio of cash?