Navigating Geopolitical Asset Allocation

This chapter explores the distinction between tactical and strategic asset allocation within a geopolitical context, using a boat metaphor to illustrate the importance of anchoring investments in market fundamentals and long-term global dynamics. The discussion highlights the impact of current geopolitical tensions on globalization trends, trade efficiency, and income distribution, contrasting the experiences of emerging markets with those of developed nations. Drawing parallels between historical power dynamics and modern challenges, the chapter emphasizes the necessity for investors to incorporate geopolitical insights into their strategies.