Resilient and profitable performers will excel in the era of deglobalisation

James Harries, co-manager, STS Global Income & Growth Trust, selects his favourite stocks as he shares where he'd put his money

Trade and investment concept
(Image credit: Getty Images)

The global economy is witnessing what might be described as a “reverse Berlin Wall” moment. For over a generation, asset owners have benefited from powerful structural tailwinds following the collapse of the Iron Curtain. The integration of Eastern Europe and, later, China into the global economy expanded the global labour pool, reduced production costs, and suppressed inflation.

This shift, supported by the US-led international order (the Pax Americana), enabled governments to enjoy a peace dividend and greater fiscal flexibility. It also drove a long-term decline in interest rates and allowed the implementation of unconventional monetary policy, such as quantitative easing after the global financial crisis – further benefiting asset prices.

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James Harries
Contributor

James Harries is the Senior Fund Manager responsible for the Trojan Global Income Strategy. He has over 20 years of investment experience and has managed global equity portfolios since 2002. James is the manager of the Trojan Global Income Fund, co-manager of the Trojan Ethical Global Income Fund and was awarded management of STS Global Income & Growth Trust in November 2020.