The Weaponisation of Economics (Part 2: Economic Weapons of Mass Destruction)
The weaponisation of the global economy has a life cycle of its own. Economic Weaponisation is growing in lethality and sophistication. Weaponisation is shaping the post-globalisation economy. This seismic shift seems to be forming into Strategic Capitalism. That’s an economic model in which the state dominates and forces the market to address wide- ranging strategic security, economic and emotional goals – not all of which are based upon rational observation and policy making. The process started long ago.
This paper fantasises (perhaps?) about where it is headed. There are 7 highlighted trends (see after this) which have significant implications for investors.
The big message is stay out of the dollar and hold gold, Euro, Yen and defence stocks. Stay underweight fixed income and global equities. The two EM markets we remain overweight/long are China (AI, Tech & Consumer) and India (domestic consumer stocks). We are neutral RMB.