Investors are dumping shares of companies with international supply chains.
Why it matters: It's yet another sign of a mass rethinking of the assumptions that underpinned the post-Cold War era of globalization.
State of play: Since supply chain issues emerged in the middle of last year, Goldman Sachs’ thematic "offshore" basket of stocks started to drastically underperform an "onshore" basket.
- The offshore basket includes companies like Whirlpool, Cisco Systems and Apple, which are reliant on a global manufacturing system.
- The onshore basket includes companies like steelmaker Cleveland Cliffs, chipmaker Intel and equipment maker Caterpillar, which have significant or growing manufacturing bases in the U.S.
The bottom line: Since Russia invaded Ukraine, that underperformance has worsened sharply, suggesting that it's not just Larry Fink who thinks globalization as we know it is over.
Go deeper: The stock market's fine with rising recession risk