Bi-Weekly Geopolitical Report – US Influence on the Wane: New Evidence (September 29, 2025)

by Patrick Fearon-Hernandez, CFA  | PDF

World history goes through phases, not as a cycle of recurring situations but as a series of “regimes” or broad sets of trends and relationships. Each regime is complex, since it encompasses issues such as the political landscape in various countries, the dominant global approach to economic policy and trade relationships, the structure and operation of security alliances, and even cultural norms. The most recent regime was the post-Cold War period of globalization that ended around 2008. Since each regime is so complex, and its elements or facets can change at a different pace, it can be hard to know for sure that a transition is taking place. It can be even harder to know what the new, following regime will look like.

Importantly, several major developments over the last few months have confirmed that the world is still transitioning away from the Globalization period. These developments have also provided added evidence about what to expect during the incoming regime of Global Fracturing or, potentially, Chinese Hegemony. As shown in this report, one key message is that the US continues to lose influence in international affairs as it steps back from its traditional role as global hegemon. Recent evidence of this includes the latest United States-China trade talks, the Russian drone incursions in Poland and Romania, and Israel’s attack on Hamas officials in Qatar. These developments are in line with other examples in recent years, such as the Obama administration’s decision not to enforce its “red line” against Syria’s use of chemical weapons in its civil war and the Biden administration’s chaotic withdrawal of US forces from Afghanistan. In this report, we discuss the latest developments and outline how they might affect financial markets going forward.

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Don’t miss our accompanying podcasts, available on our website and most podcast platforms: Apple | Spotify 

Bi-Weekly Geopolitical Report – Implications of the Israel-Iran Conflict (July 28, 2025)

by Daniel Ortwerth, CFA  | PDF

During the night of June 13, an already unsettled Middle East was shocked to a new level of unrest when bombs from an Israeli airstrike rained down on Iran’s key nuclear and military facilities. In what proved to be the opening salvo of a 12-Day War, which included the first use of “bunker-buster” bombs by the United States, Israel asserted that the barrage was necessary before its adversary could get any closer to building an atomic weapon. In an already tense and conflict-ridden region, questions abound as to how this conflict will affect the Middle East’s balance of power and the region’s relations with the rest of the world. With Iran’s nuclear program at the center of the conflict and the future of its government in question, a heightened sense of risk and uncertainty looms large over the deliberations of global leaders.

 This report provides an overview of the war and discusses where things stand now (at least as of our publication date). The report also addresses the conflict’s likely impact on the Middle Eastern balance of power and examines its possible long-term regional effects. As always, we conclude with investment implications.

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Don’t miss our accompanying podcasts, available on our website and most podcast platforms: Apple | Spotify 

Bi-Weekly Geopolitical Report – Israel’s Pager Caper and Supply Chain Security (October 21, 2024)

by Bill O’Grady and Patrick Fearon-Hernandez, CFA  | PDF

Can you trust your refrigerator? What if it could be weaponized against you, perhaps by being booby-trapped to explode, release poisonous gas, or just stop working on the command of some foreign enemy communicating with its computer chip? Just as important, if everyday products connected to the internet or communication networks could become that dangerous, what would you want your government to do to protect you? What could your government do to protect you?

These questions may sound strange, but they demand attention after hundreds of Hezbollah militants in Lebanon were maimed by simultaneously exploding pagers and walkie-talkies on September 17 and 18. Dozens of militants died in the attacks, which have been attributed to Israel. In this report, we explore how this groundbreaking attack has probably transformed national security requirements and will likely lead to big, costly changes in global supply chains in the coming years. We will also delve into the underlying philosophies that help explain why this could impact globalization. As always, we wrap up with a discussion of the implications for investors.

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Don’t miss our accompanying podcasts, available on our website and most podcast platforms: Apple | Spotify 

Bi-Weekly Geopolitical Report – Mid-Year Geopolitical Outlook: Uncertainty Reigns (June 17, 2024)

by Patrick Fearon-Hernandez, CFA, Thomas Wash, Daniel Ortwerth, CFA, and Bill O-Grady | PDF

As the first half draws to a close, we typically update our geopolitical outlook for the remainder of the year. This report is less a series of predictions as it is a list of potential geopolitical issues that we believe will dominate the international landscape for the rest of the year. The report is not designed to be exhaustive. Rather, it focuses on the “big picture” conditions that we think will affect policy and markets going forward. We have subtitled this report “Uncertainty Reigns” to reflect the fact that chaos and unpredictability have become entrenched as the post-Cold War era of globalization gives way to a new period of Great Power competition. Our issues are listed in order of importance.

Issue #1: China – South China Sea

Issue #2: Russia-Ukraine-NATO

Issue #3: Israel-Hamas-Iran

Issue #4: The US Elections

Issue #5: US Defense Rebuilding

Issue #6: Global Monetary Policy

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Don’t miss our accompanying podcasts, available on our website and most podcast platforms: Apple | Spotify