Stocks in the U.S. technology sector fell 2 percent Monday, following the Nasdaq lower as markets digested political uncertainty in U.K. The vote to separate the global financial center of London from the European Union came as technology companies increasingly look internationally. Facebook's Mark Zuckerberg, for instance, emphasized the power of global connectivity in a panel Friday.
Technology analysts had mixed responses to the Brexit news: UBS analyst Eric Sheridan wrote that there looked to be limited impact on internet company sales in the 2016 and 2017 fiscal year. But recession in Europe could hurt the growth of advertising for companies like Facebook, warned Needham analyst Laura Martin.
"I think this is a moment where we need to look at factors we normally ignore as investors," McNamee said. "Typically people assume that politics will take care of itself, and in the end won't really address the world economy. ... I think this distrust of leadership — not just in government, but also in business, religion and all these other major sectors of the economy — that distrust is now manifesting itself in ways that may actually change the rules of the game of how the economy works."
While the markets will adjust to a new paradigm of globalization, it's not something that investors have worried about over the past 50 years, McNamee said. For instance, left unbalanced with the U.S. and U.K. regulations, Europe's stricter stance on privacy could limit opportunities for companies like Google, he said.
"As investors, we can figure out strategies to leverage in the short-term what's going on in Europe right now," McNamee said. "What I don't think we can protect ourselves against is if the political environment shifts and every year we reduce the level of globalization."
Disclosure: Facebook is part of Elevation Partners' portfolio.