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Outlook 2026: Blowing Bubbles?
We expect risky assets to perform well in 2026 as major asset classes continue to inflate. Inflating gains are expected to be accompanied by greater dispersion, resulting in our preference to diversify across a wider range of asset classes.
Strategic Insights
- Equities: We expect strong earnings growth to dominate elevated valuations. Diversification is key to managing risks.
- Income: Emerging Market (USD and local currency) bonds offer attractive yields and diversification from a Fed-centric outlook alone.
- Diversifiers: Gold is expected to extend gains. Alternative strategies and currencies like JPY and CNH are essential for effective diversification.
Investment Opportunities:
- Equities: Focus on global gold miners, US tech, pharma, utilities; China non-financial high-dividend state-owned entities, Hang Seng Technology Index; Europe banks, India large & mid-cap equities.
- Bonds: Invest in US Treasury Inflation-Protected Securities, short-duration high-yield bonds, Asia Investment Grade bonds and CLO bonds.
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Deposit Insurance Scheme
Singapore dollar deposits of non-bank depositors are insured by the Singapore Deposit Insurance Corporation, for up to S$100,000 in aggregate per depositor per Scheme member by law. For clarity, these investment products are not deposits and do not qualify as an insured deposit under the Singapore Deposit Insurance and Policy Owners’ Protection Schemes Act 2011. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured.
The information stated in this article is accurate as at the date of publication.
