Apr 1, 2022 - Economy

Globalist stocks aren't popular

Data: Goldman Sachs; Chart: Axios Visuals

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.

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