• Globalization Rewired highlights investment opportunities in the shift to resilient, regional supply chains.
• Mexico's proximity to the US drives a nearshoring boom, boosting its construction and telecom sectors.
• India's tech sector and young workforce create a digital powerhouse, fueling IT and financial services.
• This long-term structural shift presents key investment opportunities in emerging market leaders.

The Great Global Shuffle and Where the Money Might Go Next

For decades, the grand plan of globalisation seemed frightfully clever. Make everything in the cheapest place possible, stick it on a boat, and hope for the best. It was a model built on the blissful assumption that nothing could ever possibly go wrong. Well, we all know how that turned out. The moment a single ship got stuck or a pandemic shut a port, the whole delicate house of cards came tumbling down. Suddenly, saving a few pence on production meant nothing when your entire inventory was bobbing about in the middle of an ocean.

The Unravelling of a Flawed Idea

What we are seeing now is not some temporary hiccup. It is a fundamental, and frankly long overdue, rewiring of global trade. Companies are waking up from their cost-cutting fever dream and realising that resilience matters. Proximity matters. Having your supply chain somewhere you can actually get to, without crossing three continents and a time zone for every component, is starting to look like a rather good idea.

This isn't just about a corporate exodus from China, though that is certainly a part of the story. It is a broader search for partners who offer a sensible blend of cost, capability, and crucially, a reduced risk of catastrophic failure. And in this great global shuffle, two countries seem to be playing their hands exceptionally well: Mexico and India.

Mexico: The Neighbour with Benefits

Mexico’s appeal is beautifully simple. It sits right next door to the world’s biggest consumer market. For any American company tired of waiting for shipments from the Far East, the logic of nearshoring is almost impossible to ignore. Why wait three months when you could have it in three days?

This creates a potential boom for companies on the ground. Take CEMEX, a global giant in building materials. When new factories get built, they need an awful lot of concrete and cement. CEMEX is right there, ready to supply the very foundations of this industrial shift. Then you have América Móvil, the telecommunications behemoth. Modern manufacturing runs on data, and this company provides the digital plumbing that makes it all possible across Latin America.

India: The Brains of the Operation

While Mexico wins on geography, India’s proposition is built on demographics and digital prowess. It has a vast, young, and educated workforce, particularly in technology. For companies looking to diversify their operations and tap into a deep well of talent, India presents a compelling case.

This is where a company like Infosys comes into its own. It is one of the key architects of this transition, helping global corporations navigate their digital transformations and set up complex operations in a new country. At the same time, a bank like HDFC is essential. It acts as the financial engine, providing the capital for local companies to expand and the banking services that multinational firms require. It’s a crucial piece of the puzzle, funding the very growth that foreign investment helps to create. These companies represent different facets of a powerful economic story, a narrative that some are calling the Globalization Rewired theme.

A Healthy Dose of Scepticism

Of course, one should not get carried away. Investing in emerging markets is not a gentle stroll in the park. There are risks. Currencies can wobble, political landscapes can change with alarming speed, and their economies can be far more volatile than what we are used to in the developed world. A downturn in the US would undoubtedly hit Mexico, and India has its own hurdles with infrastructure and regulation. This is not a risk free bet, because no such thing exists in investing. However, for those with a sensible time horizon, the structural trends underpinning these markets could be powerful enough to merit a closer look.

Deep Dive

Market & Opportunity

• Global supply chains are undergoing a fundamental rewiring, relocating closer to home markets to build resilience and reduce risk.
• This shift is creating investment opportunities in emerging markets, particularly Mexico and India.
• Mexico is positioned as a "nearshoring champion" due to its geographical proximity to the U.S. consumer market.
• India is positioned as a "digital powerhouse" due to its young, educated workforce and established technology sector.
• The supply chain reshuffling is still in its early stages, suggesting a long-term growth trend.

Key Companies

• CEMEX, S.A.B. de C.V. (CX): One of the world's largest building materials companies, providing cement and concrete. It is positioned to benefit from the infrastructure boom accompanying nearshoring in Mexico and the Americas.
• America Movil S.A.B. de C.V. (AMX): Latin America's largest telecommunications company. It provides the essential digital infrastructure required for modern manufacturing and business operations relocating to the region.
• Infosys Ltd. (INFY): A large IT services company in India. It assists global corporations with digital transformation and establishing operations in India, with a focus on artificial intelligence and automation services.

Primary Risk Factors

• Investing in emerging markets carries risks such as currency fluctuations, political changes, and economic volatility.
• Mexico's economy is closely tied to U.S. economic performance, and a recession in America would likely have a significant impact.
• India faces challenges including infrastructure constraints and regulatory complexity.
• Companies face direct competitive pressures within their respective industries.

Growth Catalysts

• The structural shift away from ultra-long supply chains towards nearshoring and diversification.
• Increased demand for building materials in Mexico to support new manufacturing facilities.
• Growing need for digital infrastructure and IT services as companies relocate or expand operations in Mexico and India.
• The trend of digital transformation, artificial intelligence, and automation services is a key driver for technology service providers.

Investment Access

• The basket of stocks is available on the Nemo platform.
• Investment is accessible via fractional shares, with a starting amount of $1.
• The platform offers commission-free investing.