Man Group Analyzes Deglobalization's Impact on Investment

Asset manager Man Group PLC has issued a new analysis delving into the global phenomenon of "deglobalization" and its ramifications for the investment landscape. The firm posits that the era of neoliberal globalism has peaked, giving way to a populist age focused on deglobalization.

The research, which fuses political economy, data science, and investment analysis, examines four potential future scenarios for the world order: deglobalization, re-Americanization, de-Americanization, and fragmentation. Each scenario carries materially different consequences for asset returns, inflation dynamics, and portfolio construction.

Man Group has developed an analytical toolkit that leverages machine learning and real-time data to monitor 77 key indicators. The tool aims to quantify how quickly the world is moving away from its peak global integration, a period identified around 2007.

The firm suggests that the rise of deglobalization may increase inflation risk due to supply chain frictions and reduced labor arbitrage. Furthermore, it could heighten political risk premia and create greater market dispersion. Man Group advises investors to recognize this period as a "regime shift" and adapt their strategies accordingly.