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The End of Sovereignty? Globalization, Nationalism and the Implications for Institutional Investors

Never before in history have people, information and capital moved across borders at the speed, frequency and volume we see today. In PGIM’s latest white paper, we take a closer look at the escalating tussle between globalization and nationalism, the implications this could have for global financial markets, and how long-term investors may best position themselves to navigate these uncertain times.

  • PGIM

2 POWERFUL TRENDS RESHAPING THE GEOPOLITICAL LANDSCAPE

1. Rumors of the demise of globalization are greatly exaggerated.
Cross-border flows of financial, human and digital capital are reaching high water marks—with new technologies further accelerating the pace of global change.

The End of Sovereignty Whitepaper stats

2. A populist backlash against globalization has taken hold in developed markets—at times focused on free trade and at times on immigration.
The momentum behind global integration and the “borderless” challenges this has created is seen as a threat to state sovereignty – and now, nation-states are taking a variety of actions to wrest back control.

DISCOVER 5 KEY INVESTMENT CONSIDERATIONS

The escalating tussle between globalization and nationalism could have significant implications for global markets. As a result, institutional investors may want to consider rethinking their investment approach across 5 primary areas.

Download the whitepaper to get the full perspective


1. “Countries vs corporations data set”, Global Justice Now, September 2016. <http://www.globaljustice.org.uk/resources/countries-vs-corporationsdata-set>; size of economies is measured by revenue.
2.  Gupta, Abhishek and Subramanian, Madhu, “Economic Exposure in Global Investing: Tilting Portfolios Based on Macroeconomic Views”, MSCI, October 2014; Silverblatt, Howard, “S&P 500 2016: Global Sales”, S&P Down Jones Indices, July 2017; S&P data.
3.  “Understanding Globalisation”, Bank for International Settlements, June 2017.
4. "2017 Cost of Cybercrime Study: Insights on the Security Investments That Make a Difference”, Ponemon Institute and Accenture, 2017. <https:// www.accenture.com/t20170926T072837Z__w__/us-en/_acnmedia/PDF-61/Accenture-2017-CostCyberCrimeStudy.pdf>; Large firms defined as having over 1,050 employees.


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