The rush towards globalization seems to have at least slowed in recent years. Is it beginning to reverse? If so, what might that mean for investors......
"If the forces of de-globalization succeed, two implications for investors are easy to tab. Firstly, growth will be lower, which will have a read-across to asset prices, very likely forcing them lower. As well, more equal distribution means lower corporate profit margins, which also will force asset values down.
Secondly, if the world’s economies and markets become less tightly connected, they will become less tightly correlated. A capital market with higher barriers to entry will have a tendency to go its own way. That may improve the benefits of diversification."
reuters.com/article/2015/05/05/us-column-markets-saft-idUSKBN0NQ20P20150505
