Capital Market Expectations: Portfolio Strategy

James is a portfolio manager assessing the capital market expectations for the next year. He anticipates a significant increase in interest rates due to expected inflationary pressures. Furthermore, he predicts that equities may underperform relative to fixed-income securities, particularly focusing on short-duration bonds. James is preparing to adjust his portfolio allocations based on these expectations.

Given the context of rising interest rates and anticipated equity underperformance, which of the following strategies should James consider in his portfolio management approach?