Capital Ideas Podcast Investing through shifting global trade winds
Oct 16, 2025
Kohei Higashi, a portfolio manager at Capital Group, dives into the complexities of global equities amid rising protectionism and deglobalization. He shares insights on how agile multinationals and defense contractors can thrive in this new world, highlighting dynamic firms like Northrop Grumman. Kohei emphasizes the critical role of stock selection and advises young investors to engage in field research. He also discusses the lasting impact of automation and AI, revealing fascinating investment lessons from his experiences with companies like Hitachi and Kia.
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Cautious Optimism On Market Fundamentals
- Kohei Higashi is cautious on valuations but optimistic about medium-term global corporate fundamentals.
- He expects resilient economies and profitable companies despite high U.S. valuations.
Stock-Pickers Market Ahead
- Higashi expects the next two to three years to be a stock-pickers market driven by structural shifts like de-globalization and AI.
- He stresses differentiation between winners and losers rather than broad market recovery plays.
Deglobalization As A Long-Term Cycle
- Deglobalization is a long-term structural shift reshaping politics and trade patterns globally.
- Higashi views it as a multi-year cycle that will divide economies into blocks and influence investment decisions.