Does anyone have any insights into globalization premium

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Stock Prices Under Threat as Global Trade Becomes a Pariah

https://www.wsj.com/articles/stocks-face-threat-as-globalization-loses-steam-1476644188

I found this article interesting and somewhat worrisome. This piece states that experts believe "'globalization has probably reached its peak'" (Gold and Kantchev). It goes on to say that "the broad slowdown in world trade and growing populist opposition to new trade agreements are undermining corporate profits and could be the next big drag on the stock market" (Gold and Kantchev). This piece also discusses something called globalization premium, which is the "estimate of the value globalization adds to stocks" (Gold and Kantchev). The experts believe that this globalization premium is lower than it once was and may even no longer exist. The fact of the matter is that global trade is actually slowing down and many countries are slowing down because countries are becoming more protective over their own goods.

Is anyone alarmed by experts saying that globalization has hit its pinnacle and will soon fall? Does anyone think that they are incorrect and that trading will increase again in the coming years as emerging markets develop? Does anyone fear that U.S. equity markets may take a huge hit because globalization premium is slowing? Does anyone have any insights into globalization premium?

Reference no: EM131258861

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