Markets do not operate in a vacuum. A host of factors should be considered when attempting to predict near-term directions in interest rates. These factors fluctuate over the next day, week, month, or quarter, making markets difficult to accurately predict. Therefore, at DoubleLine, when our Fixed Income Asset Allocation (FIAA) team is making investment decisions, we focus on the long-term and allocate our portfolios based upon an investment horizon of approximately 12 to 24 months. Positioning a portfolio based upon short-term market forecasts is not consistent with DoubleLine’s cardinal mandate: striving for better risk-adjusted returns. We believe our longer-term approach is in investors’ best interest and avoids potential losses from knee-jerk reactions to short-term market fluctuations.