A new Investment Paradigm is sweeping the Globe - Are you Prepared...?

About this video

• Video Title: A new Investment Paradigm is sweeping the Globe - Are you Prepared...?
• Channel: Brent Johnson Milkshakes Pod | Investing • Finance
• Speakers: Brent Johnson
• Duration: 21:59

Overview

This video discusses a significant shift in the global investment landscape, moving away from globalization towards deglobalization. The speaker, Brent Johnson, explains how this new paradigm will impact governments, markets, and investor portfolios, and he outlines the key drivers behind this change, including geopolitical rivalries, supply chain fragility, energy transition, domestic political pressures, and the weaponization of finance. He also touches on potential investment opportunities and market corrections within this evolving environment.

Key takeaways

• Emergence of a New Investment Paradigm: The world is experiencing a shift from globalization to deglobalization, impacting governance, markets, and investment strategies. This trend is expected to last for decades.
• Drivers of Deglobalization: Key factors include the geopolitical rivalry between the US and China, the fragility of global supply chains exposed by events like COVID-19, the global energy transition, domestic political pressures stemming from job outsourcing, and the weaponization of finance and commodities by nations.
• Shift in Priorities: Governments are increasingly prioritizing sovereignty, resilience, and self-sufficiency over efficiency and integration, leading to increased costs and a focus on security and redundancy.
• Investment Opportunities and Risks: The new paradigm presents opportunities in sectors like semiconductors, defense, aerospace, energy security, critical minerals, healthcare/biotechnology, and infrastructure. However, the speaker also notes potential market corrections due to stretched valuations and overbought conditions, particularly in tech stocks.
• Dollar Milkshake Theory: The video frames the discussion through the lens of the Dollar Milkshake theory, suggesting the dollar may rise against peer currencies, although current market sentiment and technicals show a complex picture with the dollar at a support level and volatility at multi-year lows.