BlackRock founder Larry Fink declared that the Russia-Ukraine war is bringing the era of globalization to an end, but investors should keep in mind that the global economy and the financial system can’t turn on a dime, analysts say.
“There is a lot of talk about countries going back to local production and the era of globalization and long overseas supply chains is over,” said Chris Rupkey, chief economist at FWDBONDS, in a note following Thursday’s U.S. data showing a fall in first-time jobless benefit claims to their lowest since 1968. “But that economic model has one gigantic stumbling block in the U.S.A. because there is no one to work the factories to produce the goods here on American soil.”
So what is Fink, one of the founders of the world’s largest investment management firm, Blackrock
BLK,
with $10 trillion under management, talking about when he talks about the end of globalization?
In his annual investor letter released on Thursday, Fink said he remains a believer in the benefits of globalization: “Access to global capital enables companies to fund growth, countries to increase economic development, and more people to experience financial well-being. But the Russian invasion of Ukraine has put an end to the globalization we have experienced over the last three decades,” he wrote.
Need to Know: It’s the beginning of the end of globalization, say BlackRock’s Larry Fink…
