Global markets, once moving in near lockstep, are showing signs of fragmentation. This raises a pivotal question for investors: Are we witnessing the demise of globalisation, or the evolution of a more strategic, redefined version of it?

From Hyper-Globalisation to Strategic Realignment

Several key indicators, like plateauing global trade volumes, redirected capital flows, and the rise of protectionist policies point towards a clear departure from the era of hyper-globalisation. Geopolitical tensions, the supply chain vulnerabilities exposed during the pandemic, and a resurgence of economic nationalism have shifted policy priorities. Governments are now placing resilience, redundancy, and national security above pure cost efficiency.

The emerging response to these pressures is visible in reshoring, nearshoring, and “friend-shoring” initiatives. Countries are reinforcing trade and production ties with politically aligned partners, supported by targeted subsidies, tariffs, an…