The world is undergoing significant structural change defined by rising geopolitical conflicts, trade barriers and a more fragmented global landscape. As this multi-year realignment plays out, identifying which companies can best adapt to the new framework is paramount to successful investing.
“With trade more restricted, the global economy will be less efficient, forcing companies to innovate to combat higher costs,” says Kohei Higashi, equity portfolio manager.
So far, markets worldwide are constructive about the opportunities ahead. Here are three areas in which we see investment opportunities.
1. New industrial policy rewires supply chains
Geopolitical tension obviously impacts defence spending, but it is also pressuring supply chains that underpin the global economy.
In response, the United States government has taken strategic equity positions in semiconductor company Intel, rare earth producers MP Materials, Lithium Americas, Trilogy Metals and US Steel. Additionally, the administration rolled back pollution rules tied to copper and signed separate deals for a 15% cut of NVIDIA and AMD’s chip sales to China.
You can now read the full whitepaper at the link below
