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A new report from the Global Market Strategy team at New York Life Investment Management warns that a fundamental transformation in the global system is reshaping markets and challenging how investors build portfolios. The report argues that geopolitics is no longer a periodic source of volatility, but a structural force driving economic outcomes, market behavior, and asset allocation decisions.
Why it matters
The resurgence of great power politics and economic nationalism is upending the relatively stable, low-geopolitical-risk environment of the 2010s. Investors now face a more fragmented and competitive global system where geopolitical shocks are more frequent and more likely to have lasting economic consequences.
The details
The report finds that rather than isolated events, geopolitical developments are increasingly driving long-term market realignments, with government policy across trade, industrial strategy, and national security playing a larger role in shaping market outcomes. It also highlights the rising importance of economic and financial ‘chokepoints,’ critical nodes in systems such as payments, shipping routes, technology supply chains, and energy flows, where disruptions can cascade across markets and trigger outsized volatility.
- The report was released on March 30, 2026.
The players
New York Life Investment Management
A group of affiliated investment advisers of New York Life Insurance Company, including New York Life Investment Management LLC, a registered investment adviser.
Michael LoGalbo
Global Market Strategist at New York Life Investment Management.
What they’re saying
“The resurgence of great power politics is reshaping the relationship between geopolitics and economies. For investors, the message is clear: yesterday’s tools won’t manage today’s risks.”
— Michael LoGalbo, Global Market Strategist
What’s next
The full report is available for download on the New York Life Investment Management website.
The takeaway
This report highlights the need for investors to rethink their portfolio construction and risk management strategies to navigate the new era of heightened geopolitical risk and market volatility driven by great power competition and economic nationalism.
