On this episode of Going Long, Sarah Williamson speaks with Ron O’Hanley, Chairman and CEO of State Street, about why “reglobalization” — not deglobalization — better describes today’s global economy.

Topics include:

• [00:05:00] How today’s changes in global supply chains, capital flows, and policy shifts are reshaping long-term investing
• [00:12:00] The evolving role of the U.S. dollar and the possibility of a more multipolar financial system
• [00:19:30] How investors can navigate uncertainty through diversification, insurance, and long-term thinking
• [00:27:00] Under-appreciated risks: sovereign debt, immigration declines, geopolitics, climate costs — and where opportunities may emerge

Reglobalization, Not Deglobalization

On this episode of Going Long, O’Hanley argues that the world is reorganizing. Trade and capital flows are continuing, but the underlying objectives driving them are changing. For decades, globalization prioritized efficiency — lowest cost, fastest production, seamless capital movement. Today, that focus has broadened to include resilience, national security, and political considerations, making long-term decision-making more complex.

One of the clearest examples of this shift is the transformation of global supply chains. Companies that once optimized for maximum efficiency are now introducing redundancy, dual or even triple sourcing, to reduce vulnerability to disruption. That added resilience comes with a cost.

For investors, evaluating companies now requires understanding how they are pricing risk, optionality, and geopolitical exposure. The result is a more complicated investment landscape in which assessing long-term profitability and risk requires deeper analysis and greater attention to policy and structural shifts.

A More Multipolar Financial System

The conversation also explores how these changes could reshape capital markets. While the U.S. dollar is likely to remain central to the global system, O’Hanley suggests it may evolve from being the dominant currency to one major currency among several. As regions deepen economic ties internally and seek greater self-reliance, capital flows may increasingly align with regional trade patterns and currencies.

This does not imply a rapid unwinding of the current system, but rather a gradual rewiring. For long-term investors, that means adapting to a world where portfolios across regions may diverge more significantly than they have in the past and where policy decisions increasingly shape capital allocation.

Investing Through Uncertainty

In this more uncertain environment, traditional investment playbooks may no longer suffice. O’Hanley emphasizes the importance of diversification, scenario planning, and building forms of “insurance” into portfolios — strategies that acknowledge both known risks and unknown outcomes.

Markets, he notes, often overreact in the short term and underreact in the long term. Navigating this environment requires balancing conviction with flexibility and maintaining a long-horizon perspective even amid volatility. Investors and companies alike must consider how to position themselves not just for the most likely outcome, but for a range of possible futures.

Risks, Opportunities, and the Long View

Looking ahead, the discussion highlights several underappreciated trends that could shape global markets: rising sovereign debt levels, declining immigration and its impact on labor supply, the cost of climate adaptation, and shifting geopolitical alliances; each has the potential to influence growth, inflation, and investment returns over time. At the same time, O’Hanley sees opportunity — particularly in emerging markets, which he believes are stronger and more resilient than many investors assume.

In a world being rewired rather than unwound, investors who can balance discipline, diversification, and adaptability will be best positioned to navigate what comes next.