Geopolitical shifts and investment implications

Geopolitical risks are here to stay
Russia’s incursion into Ukraine and the great power rivalry between the US and China have catapulted investors into a new reality of constant and increasing geopolitical risks.

There are two specific events that, should they materialise, would lead to deep ruptures in the global economy and amplify market anxiety:

  1. A substantial escalation between the US and China;
  2. An escalation of the war in Ukraine, either beyond its borders or because another global power gets actively involved.

As these risks loom large, investors need to get a sense of how likely they are to happen and how best to prepare. Tensions between the US and China, as well as the war in Ukraine, are accelerating geopolitical shifts, as many countries seek to position themselves for: (i) maximum gain as global powers compete, and (ii) possible military ramifications. The realignments that are underway will raise costs, and require businesses and investors to spend more time navigating and monitoring risks.

In this paper, we explore the nature of US-China relations moving forward, as well as how the war in Ukraine might play out. We will then examine how these realities are affecting geopolitical shifts. Finally, we will examine the possible investment implications.

You can now read the full whitepaper at the link below