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.
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.
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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