Entering a New Era of Balance: Geopolitical Implications on Investment Decisions

Peter Sundin
4 Min Read

For the past decades, we have seen a slow but steady change in economic development. With emerging economies becoming stronger, there was a huge potential to bring more economical equality and grow new markets. The countries in focus often referred to as the BRICS, were: Brazil, Russia, India, China, and South Africa. When looking at the current state of these economies, a lot has changed. In this article, we will try to understand the developments for the coming ten years while focusing on portfolio growth for your stocks.

Economical development slow-downs

Zooming on Brazil and Russia, we see two countries that have moved to a more autocratic system. This has hampered economic development and in the case of Brazil also led to a poor battle against COVID-19. Russia has a unique situation. Since the annexation of Crimea, it has been under scrutiny among Western countries. This intensified through the invasion of Ukraine, which resulted in harsh sanctions and a clear split between the West and Russia on an economic level.

This brings us to China

While the collaboration between the West and Russia is deteriorating, Russian president Vladimir Putin and the Chinese leader Xi Jinping indicated that their friendship has “no limits”. China has fared well in the opening up of economic activity in the country, allowing a more liberal approach to economics to foster. Although China is heavily intertwined with the West when it comes to trade, it does take a harsh stance towards the West and the US in particular.

Dynamics in China’s economy are changing

The Chinese economy fared well on a liberal approach, with many tech firms being able to attract top talent and develop top-notch applications. However, we do see a slowing down in this attitude from the Chinese Communist Party (CCP). With a crackdown on tech, firms have lost billions of dollars in market capitalization. In a tightly controlled market, it becomes hard for investors to move around. This is something that became evident in the crackdown, which could also impact other areas of the Chinese economy.

A good example of another area of interest is the real estate market. With Chinese people having limited investment options, they flocked to buy real estate. With the rising prices, ghost villages and cities emerged throughout the country. With the largest real estate developers such as Evergrande now at the edge of collapse, it becomes harder to ignore the implications for the global economy. These developments will have a significant impact on your stocks and therefore you should try to diversify as much as possible.

Stay on top of the game

Want to follow the latest development in the stock markets? You can consider a stocks tracker. This is an application that helps you to manage your portfolio and receive the latest news. It is also possible to set up push notifications to receive important news related to the market or the stock you own.


A good example of such an application is Delta. This application allows you to combine stocks and crypto in a single overview. You can easily connect through APIs of brokers and wallets for crypto holdings. Want to learn more? You can visit their website through: https://delta.app/en.

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Peter Sundin was born and raised in New Jersey. He has contributed to Buzz Feed, Details and TODAY and served as a commentator for NPR, MSNBC and HuffPost Live. As a journalist for Morning News Ledger, Peter mostly covers national news. Aside from earning a living as a freelance journalist, Peter also works as a dog walker.