Why Geopolitics Is Changing the Value of Tangible Assets

Munich, May 14, 2026

As the Financial Times recently reported, geopolitical fragmentation, industrial policy, and strategic competition among major economic blocs are increasingly changing the way governments and investors think about critical infrastructure, supply chains, and industrial capacity. What used to be primarily a question of efficiency is now increasingly becoming a question of resilience, control, and physical security.

A recent analysis by Dr. Raphael Nagel (LL.M.), Founding Partner of Tactical Management, examines how this geopolitical shift is structurally altering the valuation logic of tangible assets and physical assets.

The analysis, published under the title "Geopolitics and Tangible Assets: The New Logic of Capital" argues that the global economy is entering a phase in which operational control over scarce physical assets is becoming increasingly important. Energy systems, industrial infrastructure, raw materials, agricultural land, logistics corridors, and strategic production sites are no longer viewed exclusively as traditional investment categories, but increasingly as instruments of geopolitical positioning and economic stability.

According to the analysis, the fundamental assumptions underpinning decades of globalization are coming under increasing pressure. Geopolitical fragmentation, unstable supply chains, semiconductor dependencies, and uncertainties in the energy sector are reshaping the strategic priorities of companies and capital markets. The energy crisis beginning in 2022, in particular, has demonstrated how quickly physical infrastructure and access to resources can once again become key factors of power.

A key finding of the analysis is:

"Whoever controls physical resources, strategic locations, and operational assets sets the rules of the game."

The analysis further argues that global capital markets increasingly value ownership structures involving physical control more highly than purely financial exposure. In geopolitically unstable environments, theoretical access alone is often no longer sufficient if operational dependencies continue to exist via external systems, foreign supply chains, or politically vulnerable infrastructure.

Dr. Raphael Nagel describes this development as a "return to a pre-globalized understanding of capital," in which the owner of the physical asset ultimately also holds the strategic bargaining power.

This trend is now evident across numerous industries. Governments worldwide are expanding their industrial policy strategies around semiconductors, rare earths, energy infrastructure, food security, and domestic production capacities. At the same time, companies are accelerating their nearshoring and reshoring strategies to reduce geopolitical dependency risks.

The analysis highlights that industrial real estate, agricultural land, strategic raw materials, and operational corporate investments within politically stable regions are gaining structural importance. Proximity to production and physical access are increasingly acquiring measurable geopolitical value.

In parallel, geopolitical tensions are increasingly influencing the behavior of institutional investors. Factors such as regulatory stability, energy independence, supply chain control, and legal reliability are playing an ever-greater role in long-term capital allocation.

According to Tactical Management, this is not a short-term market reaction, but rather a profound structural shift in the global economy. The era of maximum globalized efficiency is gradually being replaced by a system in which strategic redundancy, national capabilities, and operational resilience are key valuation factors.

Another key finding of the analysis is:

"It is not liquidity and global diversification, but control over scarce physical goods that carries the decisive capital premium."

The analysis concludes that geopolitical fragmentation is fundamentally altering the valuation of scarcity, infrastructure, and physical assets in international markets. The boundaries between the financial system, industrial policy, and geopolitical strategy are becoming increasingly blurred.

The full analysis can be found here:
https://www.raphaelnagel.com/geopolitics-real-assets

Tactical Management Germany GmbH
Karslplatz 3
80335 Muenchen
Germany

https://tacticalmanagement.ch/

Dr. Raphael Nagel (LL.M.)

nagel@tacticalmanagement.ch

Tactical Management Germany GmbH is an investment partner focused on companies facing complex situations or undergoing transformation. The firm does not limit itself to providing capital but actively participates in corporate management to stabilize, restructure, and strengthen the business.

Its approach combines operational experience with decisive execution, enabling the repositioning of companies and the creation of long-term, sustainable value, particularly in succession processes, spin-offs, or strategic realignments.

This release was published on openPR.