Welcome to Thoughts on the Market. I'm Michael Zezes, head of Public Policy and Municipal Strategy for Morgan Stanley.

Along with my colleagues bringing you a variety of perspectives, I'll be talking about the intersection between U.S. public policy and

financial markets. It's Wednesday, September 4th at 9 a.m. Eastern. It's important for investors to understand

the long-term trend that's being pushed by the U.S. China trade tensions, regardless of whether or not they come to a deal.

You might remember us talking about slobilization, the idea that globalization is starting to

slow for a variety of technological and economic reasons, which both enable and are compounded by geopolitical concerns.

And what's happening between the US and China is a great example of slobilization.

Slowly but surely, each country is taking steps to disentangle themselves from the other.

China, for example, has allowed its currency to depreciate in recent months.

In the US, new laws restricting foreign investment have started to blend economic and national security issues, suggesting the U.S. is also preparing for a world of extended tensions.

Most recently, for example, the Wall Street Journal reported that the U.S. is considering blocking and undersea cable that was a joint venture between

US and Chinese companies.

So what's the takeaway for investors?

Start thinking about a world where both the US and China's multinational companies may have to

curb their global ambitions, but to the benefit

of smaller local rivals.

That means the Telecom Auto and Asia tech sectors may face some headwinds, but there may be

new growth opportunities for payments companies as well as China internet

and small and mid-cap US internet companies. Thanks for listening.

Tune in every Monday, Wednesday, and Friday for our latest thoughts on the market.

The preceding content is informational only and based on information available when created.

It is not an offer or solicitation nor is it tax or legal advice.

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