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Below the Views on Divergent Global markets by Prashant Tandon, Executive Director, Global Investments, Waterfield Advisors

The once-synchronised flow of global markets is fragmenting, prompting a critical question for investors: Are we witnessing the end of globalisation, or the onset of a strategic realignment?

Key indicators—such as plateauing global trade, reallocated capital flows, and rising protectionism—suggest a departure from the era of hyper-globalisation. Geopolitical tensions, supply chain disruptions exposed by the pandemic, and the rise of economic nationalism are reshaping global policy priorities, with an increasing emphasis on resilience, redundancy, and national security over cost efficiency.
This transition is manifested through reshoring, nearshoring, and "friend-shoring," all of which are supported by targeted subsidies, tariffs, and industrial policies. Rather than indicating a breakdown of global interdependence, these changes reflect a reorientation of capital and trade toward politically aligned and regionally concentrated frameworks.

Implications for Investors:
We appear to be entering an era of re-globalisation—characterised by strategic integration, regional blocs, and trusted partnerships. Diverging markets illustrate this rebalancing, not disintegration.

Investment Takeaways:
Investors should anticipate greater dispersion across geographies and sectors. Potential opportunities may arise in:

* Supply chain resilience and infrastructure
* Domestic industrial leaders benefiting from supportive policies
* Companies focused regionally or aligned geopolitically

Navigating this new landscape will require agility, regional insights, and a firm thematic conviction.

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