There are increasing concerns that the period of globalisation is drawing to a close and the countries are moving away from trade liberalisation towards increased trade protectionism, which could have far-reaching consequences for economies, companies and investors. In this note, Global Equities Portfolio Manager Amit Lodha shares his insights on challenges to globalisation, its implications for investors in global equities and opportunities for active investors in a de-globalising world.
In his book ‘The Levelling: What’s Next After Globalisation’, Michael O’Sullivan argues the case for the end of globalisation and how a new world order will be established in finance, economics and geopolitics. He eloquently suggests that today is analogous to a period of the late 1980’s where many people focussed on the fall of communism itself and few saw that a bigger trend i.e. globalisation was about to take hold. The two major ballot box surprises: Brexit and the election of Donald Trump as the US President, suggest that we are in the process of a similar paradigm shift where the sun is setting on the globalisation-driven world order of the last 40 years and we are in the noisy and disorderly period of the transition to, and the birth of, a new order.
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