Meketa: Deglobalization (Whitepaper)

In a recently released report, the Meketa Investment Group¹ addressed the potential onset of a period of deglobalization, driven by current world events like the COVID pandemic and the war in Ukraine. These developments, according to Meketa, are prompting corporations and countries to secure their supply chains and national interests by limiting and diversifying their trade interactions. The Group postulates that these shifts might constitute a slowdown or even reversal of the globalization process that, over the past fifty years, has fuelled global investment, spurred growth, and decreased the cost of manufactured goods. Such a change would have profound, lasting effects on the global economy and for investors.

Meketa's study involved an analysis of the current evidence for deglobalization, examining the contemporary scenario and the historical impacts of globalization, with an emphasis on the post-WWII period. In addition, they delved into the costs and benefits of globalization to discern the potential effects of its possible breakdown. The Meketa Investment Group concluded: "Beyond the obvious diminishment of the peace dividend, we find that deglobalization may have ramifications for price stability, interest rates, economic growth, and lower returns on investment in the US and beyond."