Bi-Weekly Geopolitical Report – The Corporatist State and Its Investment Implications (July 27, 2026)
by Patrick Fearon-Hernandez, CFA | PDF
From personal experience, most of us understand that humans often focus on issues in the here and now rather than big, abstract trends that are hard to understand or categorize. We tend to get caught up in the stresses of everyday life. Perhaps we get up in arms about the near-term movement in the stock or bond market, rather than the geopolitical and economic forces that underlie their behavior. As macro analysts focused on the global political and economic environment and how it can affect asset prices, one thing we here at Confluence are paying attention to is the changing relationship between the government, business, and everyday individuals. As we discuss in this report, we believe the system of political economy is shifting in the United States and many other countries, moving away from the pluralistic norms that prevailed for decades. We think the trend is toward a “corporatist” state that will have big implications for investment performance and strategy going forward.