The Future is Now for Investing in Economic Security

Economic security themes are becoming a more important part of the investment landscape as geopolitical tensions, trade fragmentation, and supply chain risk push developed markets toward reshoring and domestic production. We see continued opportunity in companies tied to US manufacturing, critical resources, and infrastructure that can support rising electricity demand from AI and electrification.

Defense spending is also likely to remain elevated, especially in Europe, as governments respond to a more uncertain security backdrop. At the same time, investor interest is shifting back toward real assets and traditional industries that can benefit from these long-term changes.

The main risk is selectivity: not every company exposed to these themes will deliver strong returns. Investors should focus on businesses with durable demand, pricing power, and disciplined capital allocation.