EY’s Geostrategic Outlook 2024 paints a vivid picture of a world swirling with challenges and opportunities – a maze for businesses, traders, and investors alike.
Here are the 10 key highlights of the report:
1. Rising Complexity: The world is moving away from simple “us vs. them” relationships towards a more complex multipolar structure, with new players like “swing states” influencing global dynamics. . A multipolar world emerges, with countries like India, Brazil, and Saudi Arabia holding the balance of power. Think of India potentially partnering with the West on security while maintaining economic ties with Russia.
2. AI as Battlefield: Artificial intelligence is becoming a new battleground in the geopolitical arena, sparking an arms race and demanding attention to ethical and regulatory considerations. From the US and China to rising players like the EU, the race for AI dominance is on. Ethical considerations and regulatory headwinds add complexity. Keep an eye on countries like Japan and South Korea making strides in responsible AI development.
3. Domestic Uncertainty: Both the US and China face internal challenges, potentially leading to market volatility. Diversification across regions and assets is crucial.
4. Global Election Fever: A global supercycle of elections will dominate headlines, with each vote potentially sending ripples through international markets. CMajor Countries that are going to have elections in 2024: India, US, Brazil, Turkey, South Africa & Indonesia.
5. Supply Chain Shuffle: Traditional global supply chains are being reshaped by protectionism and “near-shoring” trends. Look for companies adapting to these changes for potential investment opportunities.
6. Embracing Diversification: Hedge against the unpredictable. Spreading investments across diverse geographical regions and asset classes will be key for a few companies. A multifaceted portfolio will provide stability and resilience in volatile times.
7. The Ocean’s Wrath: Tensions over maritime resources are rising, making sustainable fishing and maritime security companies potentially attractive investments. Monitor developments in this domain for targeted investments.
8. The Looming Resource Wars: Competition for minerals like lithium and cobalt, essential for renewable energy and technology, intensifies. Look for countries like Bolivia and the Democratic Republic of Congo holding the keys to these resources.
9. Green Revolution Unleashed: Embracing the Sustainable Shift: Stricter environmental regulations and a boom in clean technologies offer lucrative opportunities. Think of Germany in solar energy, Chile in lithium-ion battery production, and Denmark in wind power.
10. Climate Change Calls: Building Resilience in a Warming World: Extreme weather events become more frequent, threatening infrastructure and supply chains. Investing in climate-resilient solutions in countries like the Netherlands for flood control and Bangladesh for cyclone preparedness.
This is just a glimpse of the Geostrategic Outlook 2024 by EY. You can dive deeper into the report here
Apart from the businesses, i believe a few insight could be of good use for Traders and Investors as well for having a bird’s eye view on the happenings.
What trend worries you most for 2024? How are you adapting your strategies to navigate this complex landscape?
Looking forward to your insights on this.
