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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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.
Winners: Agile Multinationals And Regional Champions
- Agile, resource-rich multinationals that can adapt supply chains will be winners in shifting trade winds.
- Regional champions with local production capacity also stand to benefit from fragmented trade blocks.
Northrop Grumman As A Defense Example
- Kohei cites Northrop Grumman as a defense-related winner benefiting from global allied spending.
- He highlights its top technology and exports to allied nations as growth drivers.