Tuesday, February 6, 2018 » Investment Strategy Update, February 2018 Alternatives, Commentary Positioning for Value: Global equity markets and risky assets alike surged higher in 2017 as earnings recovered, realized and implied market volatility tumbled to near-historic lows, and momentum and positive sentiment continue to propel valuations higher. Markets are very enthusiastic about the new U.S. administration’s execution on tax reform, which may help extend the rally in risk assets even further, provided that monetary conditions do not tighten too quickly. Therefore, our analysis continues to focus on the fundamentals of the macroeconomic landscape while considering how fundamentals may change in response to the recent policy actions. We maintained an overweight to government bond exposure through the second half of 2017 to offset additional equity risk in our portfolios. We have also been largely overweight to non-U.S. equities, benefiting from cheaper valuations and economic momentum abroad, along with a significantly weaker U.S. dollar which served as a tailwind for foreign equity exposure.