What Is Resource Nationalism? Defining the Term
There’s a term that may be new to you. So, what is resource nationalism? It generally describes the deliberate effort by a country to control the resources within its borders, including where they are directed, how they are used, and who can have access to them.
Expert Insight: LPL’s Kristian Kerr on the Strategic Impulse Behind Resource Nationalism
As LPL’s Head of Macro Strategy Kristian Kerr puts it, “It’s rarely about the commodities themselves. Rather, it reflects a deeper strategic impulse where governments begin to view resource endowments as core to national power, economic resilience, and geopolitical advantage. Once that mindset takes hold, it does not remain confined to the resource sector alone. It propagates outward, reshaping policy frameworks, trade relationships, capital flows, and ultimately, the broader macro landscape.”
The Data: Export Bans Surge Since COVID
Resource nationalism is happening. This chart shows a surge in bans on exports since COVID.
LPL points out the trend was moving toward globalization and market liberalization, but the pandemic exposed supply-chain vulnerabilities, prompting governments to wrap their arms around their own resources more tightly.
Market Impact: Commodity Prices, Equities, and Regional Winners
So, why does that matter? The first and clearest impact is on commodity prices as competition to secure supply intensifies. Commodity-linked equities, particularly in energy and materials could be beneficiaries of resource nationalism over time. Commodity-exposed regions like Latin America could also benefit.
Investment Opportunity: Sectors to Watch as Resource Nationalism Unfolds
Kerr writes that as the trend of resource nationalism continues to unfold, exposure to sectors such as energy, metals, and other real assets may become increasingly important for investors.
Historical Context: Is This Cyclical or Permanent?
It is important to point out that this shift is reversable. It is more likely to be cyclical than a permanent feature of the global economy. Historically, we’ve been here before, in the 19th and early 20th centuries, natural resources were largely controlled by colonial powers. That shifted following World War II, as decolonization established newly independent nations that reclaimed control over their natural resources. The cycles are typically slow to reverse, though.
Bottom Line: Diversification Beyond Stocks and Bonds
Bottom line, this macro-economic trend highlights the importance of diversification and investor opportunity beyond the most common asset classes of stocks and bonds.
It also highlights the importance of a relationship with a financial advisor who is linked with investment professionals who are researching economic trends and cycles that could benefit your portfolio.
Securities are offered through LPL Financial, Member FINRA/SIPC. GenWealth Financial Advisors is an other business name of Independent Advisor Alliance, LLC. All investment advice is offered through Independent Advisor Alliance, LLC, a registered investment adviser. Independent Advisor Alliance, LLC is a separate entity from LPL Financial.
