Geopolitical fragmentation has emerged as the primary lens through which global investors are now assessing equity risk, displacing the traditional focus on interest rates, inflation, and digitalization.
This structural shift is forcing a re-evaluation of supply-chain dependencies and capital allocation strategies across major markets.
The change in sentiment coincides with a period of heightened market instability.
Global equity markets extended their decline on Tuesday, with broad-based losses in the technology sector leading the sell-off.
Investors are increasingly pricing in the possibility that the Federal Reserve will need to adjust its policy stance in response to the evolving economic landscape, adding another layer of complexity to portfolio management.
Capital flows are reflecting this new reality.