Is the U.S.-Centric World Order Ending?

What a shift towards a multipolar world means for investors in 2025 and beyond

Global Power Shifts: Are We Entering a Post-U.S. World?

According to leading analysts at BCA Research, the world is gradually transitioning away from a U.S.-dominated unipolar system to a multipolar geopolitical landscape. For over three decades, the United States has functioned as the world’s central superpower, shaping global trade, finance, and foreign policy. But cracks are beginning to show in that model.

In a report led by strategists Juan Correa and Marko Papic, BCA warns investors to prepare for a new global order where multiple regional powers drive influence — rather than a single hegemon.

What Does "Multipolarity" Really Mean?

A multipolar world implies no single country has the authority or capability to dictate global norms, laws, or trade standards. Instead, economic and geopolitical influence is spread across regions, including the European Union, China, India, and other emerging markets.

Unlike the post-Cold War era where the U.S. led militarily and economically, this future looks more fragmented, with countries pursuing independent foreign and economic policies. BCA says we are entering a period of recalibration, where global capital flows, consumption patterns, and trade dynamics are undergoing a fundamental shift.

Key Signals That the U.S. Hegemony Is Waning

BCA outlines several reasons why the unipolar system may be ending:

• Decline in U.S. influence over global trade and military procurement
• Rise of regional conflicts without U.S. mediation
• Reduced concentration of global capital in American assets
• Shift in consumer demand towards Asia, especially China

The U.S., once the “consumer of last resort,” is beginning to reduce its import-reliant model, while China and the EU are emerging as more self-sufficient economic engines.

What This Means for Global Investors

A transition of this magnitude will not happen overnight, but the next 5 to 10 years could reshape portfolio strategies. BCA Research believes this shift could significantly impact how and where investors allocate capital.

1. U.S. Treasury Yields May Rise

With less foreign capital flowing into the U.S., 10-year Treasury yields are expected to rise, potentially pressuring bond prices and making American debt more expensive to service.

2. U.S. Dollar Likely to Devalue

As global investors diversify away from U.S. assets, the dollar may face downward pressure, reducing its dominance as the world’s reserve currency.

3. U.S. Equities Could Underperform

The analysts anticipate a relative underperformance of U.S. stock markets compared to international counterparts. Sectors traditionally reliant on global hegemony — such as defence, tech, and consumer imports — may face greater challenges.

Where to Look for Opportunity in 2025 and Beyond

As the world becomes more balanced across several power centres, investors should consider diversifying globally. Here are some key regions and markets to watch:

European Union

• Likely to benefit from increased internal investment and supply chain resilience
• Green energy and digital infrastructure will attract institutional capital

China and Asia-Pacific

• Rising middle-class consumption
• Growth in domestic technology, manufacturing, and green energy sectors
• Long-term focus on self-sufficiency and innovation

Emerging Markets

• Countries like India, Brazil, Vietnam, and Indonesia are positioned to benefit from capital reallocation
• Young demographics, expanding digital ecosystems, and regional trade pacts make them attractive growth markets

How to Position Your Portfolio

To navigate this new era, consider a globally diversified strategy:

• Reduce overexposure to U.S. equities and long-dated Treasuries
• Increase allocations to Asian and European equities, especially in green tech and infrastructure
• Explore emerging market ETFs or actively managed funds
• Hedge against currency risk through multi-currency portfolios

Final Thoughts: A Time of Global Rebalancing

The end of U.S. unipolar dominance does not mean instability — but rather a rebalancing of global power and financial influence. Investors who adapt to this multipolar landscape early stand to benefit from new growth opportunities, diversified income streams, and reduced exposure to single-market risk.

In short, now is the time to think beyond borders and prepare for a world where economic leadership is shared, not centralised.

Sources: (Investing.com, ChatGPT)