Businesses designed products in one country, manufactured them in another, and sold them worldwide. Lower labour costs meant cheaper goods for consumers and higher profit margins for companies. Markets loved it.
“You have this wonderful dynamic – probably even better than the Goldilocks scenario of low inflation and low interest rates – of ever-expanding profits and valuations,” says Chad Padowitz, co-chief investment officer at Talaria Asset Management.
“From a pure equity market perspective, it’s fantastic.”
But that dynamic is shifting. According to Talaria’s latest outlook, we may be entering a new era defined by economic nationalism and onshoring, and that could change the game for investors.
“We are in the midst of a fundamental change to the global integration we’ve witnessed in the past three decades,” Padowitz says.
“This will require a fresh assessment of capital, risk, and how countries depend on each other.”
Chad Padowitz is the Co-Chief Investment Officer of Talaria Asset Management. He has more than 25 years’ experience in the financial services industry in the UK, South Africa and Australia.
His experience includes working as an analyst in the treasury department at HSBC Bank in London, in derivative reporting and analysis, and as an equities research analyst at First National Bank in South Africa.
Chad holds a Bachelor of Commerce from University of the Witwatersrand (South Africa), is a Fellow of the Financial Services Institute of Australasia and is a Chartered Financial Analyst charterholder. Chad co-founded Talaria Asset Management in 2018.
