Economic
and financial globalization is not just about trade. It is about trade only to
the extent that trade includes goods, services, capital, labor, information,
and culture. Globalization concerns the positioning of the firm and the
individual in the world and not just the positioning within the nation state or
local economy. While globalization affects everyone, the focus is greater for the
person who is more in touch with London than Cleveland, Paris over San Antonio,
and Beijing over Jacksonville.
This deeper
perception on globalization is more apparent with younger money mangers and
with those educated at the better universities around the country and world
because of a change in teaching focus in the liberal arts and especially
history. The ascent of global history as a replacement to the history of the
nation or western civilization has refocused thinking about a person’s place in
the world. The redirection to global history has made students appreciate the
parallel development and at times advanced developments of alternative regions
and cultures.
Global macro
investing is for the globalist investors who believe the connectiveness
of the world is primal to all investing. This connectiveness is exploitable
because everyone does not immediately perceive it. Closeness around the globe exists
but the speed of adjustment in not always immediate. For example, the impact of
policies by the Bank of Japan will take time to affect industrial production in
the US. Credit defaults in China will spillover to the rest of the world but
impact in complex. The discounting of globe events by non-globalists is slow.
This leads to opportunities.
Being
prepared to accept cultural differences makes cross-border thinking and
analysis easier. Global history and the broader teaching of cultures and
philosophies have reduced any psychological home biases. Unified frameworks
using the tools of finance are employed without any specific anxiety about
global distances or culture.
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