When determining investment strategies, we begin with a top down approach, which means we start with an analysis of the global economy, interest rates, and public policy. The goal of investment strategy is to develop asset class allocations that are applicable to a client’s risk profile. These allocation decisions—what proportions of investor funds will be invested in different types of securities and sectors of the economy—is much more important than individual security selection. An excellent set of securities can fail to deliver the appropriate risk-reward tradeoff if their mix is not suitable for the current macro-economic environment. The performance of the various asset classes, which are related to economic sectors, varies over the economic cycle.