Geopolitical Shifts Reshape Global Markets

New report finds end of 'peace dividend' and rise of great power competition forcing investors to rethink portfolios

Mar. 30, 2026 at 8:26pm

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An abstract illustration composed of bold, primary-colored geometric shapes and clean lines, conceptually representing the interconnected global systems and chokepoints that are reshaping market dynamics.Geometric abstraction illustrates the critical nodes in global systems that are becoming flashpoints for market volatility.NYC Today

A new report from the Global Market Strategy team at New York Life Investment Management finds 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 relatively stable, low-geopolitical-risk environment of the 2010s, often referred to as the 'peace dividend,' has come to an end. In its place is a more fragmented and competitive global system, where geopolitical shocks are more frequent and more likely to have lasting economic consequences. This shift requires investors to rethink their portfolio construction and risk management strategies.

The details

The report highlights the rising importance of economic and financial 'chokepoints,' critical nodes in systems such as payments, shipping routes, technology supply chains, and energy flows. Disruptions in these areas can cascade across markets and trigger outsized volatility. At the same time, geopolitical risk can no longer be treated as episodic, but has become a persistent feature of the investment landscape.

  • The report was released on March 30, 2026.

The players

New York Life Investment Management

A Pensions & Investments' Top 30 Largest Money Manager and one of the largest active asset managers globally, with leading positions across both public and private markets.

Michael LoGalbo

Global Market Strategist at New York Life Investment Management.

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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 'Geopolitical risk in a shifting world order' 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 in response to the shifting global landscape, where geopolitical factors are playing an increasingly central role in driving market outcomes.