Gate News message, April 28 — According to Reuters columnist Mike Dolan, global markets continue to rally despite escalating geopolitical conflicts, not because investors are ignoring risk, but because markets are abandoning traditional globalization logic in favor of a new “security-driven growth” pricing framework.
Capital is concentrating in sectors with “national security attributes,” including semiconductors, AI infrastructure, energy, defense, and cybersecurity. Dolan characterizes the current environment as “Permacrisis” (permanent crisis), describing a shift from rule-based globalization to an era of prolonged disorder and geopolitical competition. Computing power, autonomous systems, energy, and cybersecurity are now viewed as “strategic assets” commanding market premium valuations.
The current equity rally shows clear structural characteristics, particularly attracting significant risk-off capital to AI-related and hard technology companies. Markets are effectively betting that future global competition will hinge on security, supply chain control, and technological sovereignty rather than efficiency. While the VIX volatility index remains near historical averages, analysts caution that low volatility does not signal low risk. Global supply chain restructuring, expanded defense spending, and competition for critical resources continue to fuel long-term inflation pressures. The analysis warns that excessive capital concentration in a few “strategic sectors” could trigger severe valuation-driven corrections that potentially exceed geopolitical shocks themselves.
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