By Ben Inker : Editor's note: Originally published as part of GMO's Quarterly Letter Q1, 2015 The past year has witnessed yet another rally in long-term bonds all around the world. Pension funds and insurers are forced to buy long duration high quality assets by regulators, and the ECB and BOJ are avid buyers of long-term bonds in their quest to help generate some inflation in the medium term. This leaves us owning more conservative "alternative" strategies as a superior anchor to the portfolio in tough economic times compared to government bonds, whose yields make little sense.