When to Take a Second Look at Disappointing Stocks

The End of Globalisation?

The end is nigh. Not the end of the world but the end of the world as we know it. That’s the message of a book published this week, and although I don’t entirely accept all the arguments in it I do think serious investors should read it because it is thought provoking and challenges conventional thinking.

The Retreat of Globalisation by fund manager Gervais Williams suggests that the Brexit vote and the election of Donald Trump as President of the United States are part of a fundamental shift away from globalisation. Barriers between countries are going up, and not just on the Mexican border.

Major upheavals have happened before. Williams cites the changes under Margaret Thatcher, although that was a UK phenomenon rather than a global one.

One assertion will interest investors. One is that we will see more “dead wood” companies that have outlived their time crashing to earth and the scope for new vibrant ones to break through will improve.