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


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.
While this may have been desirable from an economic point of view (optimising the ability of economies to pursue their comparative advantage and companies their cost base), it has created imbalances and societal pressures. These strains have helped fuel populism and economic nationalism.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The rise of president Donald Trump was emblematic of this shift, as his administration challenged long-standing norms across geopolitics, economics, and currency policy. Key areas of disruption include a weakening of traditional alliances such as Nato and a turn away from globalisation toward protectionism and tariffs.
Although some proposed tariffs have been rolled back, the global trend toward deglobalisation and economic fragmentation remains intact. At the same time, stock market valuations, particularly in the US, remain elevated. This backdrop calls for a measured and cautious investment approach.
The aim of the STS Global Income & Growth Trust is to deliver good risk-adjusted returns over the full market cycle. We focus on resilient, cash-generative businesses with predictable earnings and strong balance sheets. This helps us preserve capital during volatile periods while providing consistent and growing income. Here are three examples.
Profiting from red tape
Paychex (Nasdaq: PAYX) is a US-based leader in payroll, human resources and insurance services for small and medium-sized businesses. As regulation becomes more complex, demand for outsourced solutions is rising, which gives this firm ample scope for growth both in the US and overseas. The group also benefits from higher interest rates as it earns interest on money held for clients. With limited capital requirements and high recurring revenues, Paychex supports strong and growing dividends. It is an excellent long-term global income investment.
CME Group (Nasdaq: CME), the owner of the Chicago Mercantile Exchange, benefits directly from increased market volatility; the growing use of futures and options to manage risk in portfolios; and the ongoing rise in the size of the US Treasury market. Its control of key derivatives contracts and deep liquidity pools create formidable competitive advantages, making it uniquely positioned in today’s uncertain world.
A global leader in travel technology, Amadeus IT Group (Madrid: AMS) offers mission-critical IT services and a booking platform that connects airlines, hotels, and travel agents. Its dominant market position is protected by network effects and high switching costs. The business is volume-driven rather than price-sensitive, and we believe the shares are undervalued relative to US-listed peers.
This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.

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.
-
Zoopla House Price Index: Budget tax speculation has stalled top end of the housing market
The latest Zoopla data suggests buyers and sellers are holding off amid rumours of property tax changes
-
How to cash in on overlooked British bargains offering both income and growth
Opinion Sue Noffke, manager of the Schroder Income Growth Fund, selects three UK stocks where she’d put her money
-
Investors can tap into juicy yields in overlooked companies’ debt and equity
Opinion Ian “Franco” Francis, fund manager, Manulife CQS New City High Yield Fund tells MoneyWeek where he’d put his money
-
Domino’s Pizza Group: A global brand going cheap
Opinion The troubles at Domino’s Pizza Group look cyclical rather than structural, says Rupert Hargreaves
-
Should you invest in Hansa Investment Company?
William Salomon has finally brought the two trusts he controls together. Should investors buy in?
-
Small UK industrial stocks are hidden gems
Opinion Ed Wielechowski of the Odyssean Investment Trust highlights three of his favourite British small-cap industrial stocks
-
Aurora Innovation is running on empty – is it overvalued?
Aurora Innovation, a maker of self-driving trucks, may have promised far more than it can deliver
-
Okta: an undervalued cybersecurity play
Okta provides vital security services and appears cheap considering AI’s growing prominence
-
Why it pays to invest in family firms – and how to buy in
It makes sense to invest in family firms. Here are some of the best to buy now
-
'Where to find the world’s hidden gems offering durable growth and value'
Opinion Joe Bauernfreund, chief executive officer and chief investment officer, AVI Global Trust, highlights three businesses where he'd put his money