🏛️ PORTFOLIO: STATE INTERVENTIONISM 🏛️
The world dynamic has changed to a war economy. Starting in 2018, the Trade War between the USA and China began, and the 2020 pandemic was the trigger to adopt the new agenda: State Control. The latest regional wars (Ukraine and the Middle East), social spending through subsidies and debt, growing protectionism due to the multipolar world, changing supply chains and inflationary waves [see more: https://jjplindex.blogspot.com/2023/09/future-inflation-vs-rates.html ], and the need to the superpowers relocating their key industries to allied countries in the face of a major conflict will reactivate the prominence of the State.
At least in the US, social spending will be assured for 10 years. That is to say, deep down, it does not matter if they are Democrats or Republicans. However, this trend can be extrapolated to other countries. Mexico, for example, is planning to expand social benefits in many ways; it is important to contain and to serve as migratory state buffer (USA fence). Besides, it is necessary in order to create a pacific zone to Nearshoring (foreign companies). In fact, it also does not matter if PRIAN or PRIMOR win in the next elections, there are regional and continental plans that the next president must abide by (as currently happens).
It will be applied each time to many countries, mainly if they will be under the USA influence. The system needs to create a fence against BRICS+ and its influence, in addition to the desire to copy the social control from Chissiya [China + Russia], and the CBDC will play a relevant role in the future. This trend will bring expenses in some industries such as transportation, railways, maritime, materials, housing and engineering.
In that sense, the next portfolio is inspired by that trend. Companies are some examples of each category of the US market. The optimization sought to minimize volatility over a 1-year period. It could be replicated in any country with a developed stock market, because the logic of state control will prevail in the Western world: you will have nothing but you will be happy.
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J. Joel Padilla
Copyright: Joel Padilla 2024
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