How the rise of political insurgencies and protectionism is threatening investor returns

The increasing popularity of protectionist policies - the practice of individual countries shielding their industries from foreign competition - is growing to become one of the biggest dangers to investors currently, according to a new report.

In particular, political insurgencies, including the rise of Donald Trump in the US and the Five Star Movement in Italy, are examples of how the foundation of established parties across the globe is "being eroded and threatening free-market globalisation".  Trade of the Century - Populist politics and the hidden costs of protectionism: Why investors should take note, written by Edward Smith, an asset allocation strategist at Rathbones, looked at scenarios when protectionism arises, the countries most susceptible to it, and the implications for investors. The report said that while the...