hypothetical immunization q therefore, decrease, increase, interest, assets

AnalystForum

Duration of Assets = 5
Duration of Liabilities = 4
Let’s say you think interest rates will increase.  You are subject to price risk and therefore want to decrease the duration of your assets.  Got that.
But what if you think interest rates will decrease.  Would you:
a) still decrease the duration of your assets (to have less sensitivity to the decreasing rates, even though the decreasing rates are a good thing for you in this case)
b) increase the duration of your assets (to have even more sensitivty to the decreasing rates, which increase MV assets more than they increase MV liabilities)
c) do nothing