Deep waves: The paradoxical trinity of defense

The "Deep Water Waves" publication highlights significant geopolitical shifts impacting long-term investment returns. The withdrawal of the United States from international commitments has created a geopolitical vacuum, prompting middle powers to reshape the global order. This shift has led to large-scale conflicts in Europe, the Middle East, Africa, and Asia, disrupting the stability of previous decades. The paper explores the investment potential in the defense sector, considering the challenges faced by investors adhering to strict ESG standards.

European governments are leveraging this geopolitical shift to enhance regional resilience, security, and industrial strength, with coordination and financing playing crucial roles. For investors, these changes present both compelling opportunities and inherent risks. The report utilizes the Country Risk Framework to analyze 110 countries, offering insights into potential policy directions and key indicators for investors to monitor.

The analysis is intended for educational purposes and does not constitute investment advice. The examples provided are illustrative and not recommendations for specific investments or trading strategies.