In this episode of Excess Returns, Kai Wu of Sparkline Capital returns to break down his latest research piece, Investing Amid Trade Wars. Using over two dozen insightful visuals, Kai explores how investors should think about global trade exposure in an era of rising tariffs, economic nationalism, and geopolitical uncertainty. He makes the case for staying invested in high-quality multinational companies—especially those rich in intangible assets—and offers four actionable ways to build more resilient global portfolios. Topics Covered:
Why the market reaction to tariffs is both rational and potentially short-sighted
The long-term outperformance of global vs. domestic firms
How to define and measure global trade exposure at the company level
Real-world trade shocks and what they reveal about investor behavior
The four traits of resilient global firms
Why intangible-heavy businesses are uniquely positioned to weather trade disruptions
International vs. U.S. multinationals: hidden value in non-U.S. stocks
Practical suggestions for portfolio construction in a deglobalizing world
Related Episodes
Broken Data. Hidden Opportunity | GMO's Warren Chiang on Deep Value’s Historic Setup
GMO’s Warren Chiang joins us for a deep dive into the art and science of systematic value investing. In this episode, Warren shares how his team has refined traditional value investing to adapt to an...
Blind to Power: The Hidden Investing Risk of Rising Strongmen | Peter Atwater
In this episode of Excess Returns, Matt Zeigler sits down with Peter Atwater—President of Financial Insyghts, author of The Confidence Map, and expert on decision-making under uncertainty. Peter lays...
Finding Great GARP Stocks with David Giroux
David Giroux, CIO and Head of Investment Strategy at T. Rowe Price Investment Management, has achieved something rare in investing—beating his Morningstar peer group for 17 consecutive years. In this...