Despite inflationary pressures and other external factors, DBS views a soft landing in the US as the base case, driven by improving corporate margins and growing household wealth, which underpin resilient domestic consumption. Active investments by companies in the AI race, particularly by hyperscalers like Amazon, Google, Microsoft and Meta, are expected to sustain interest in tech and related investments.
This year’s investment landscape is both “complex” and “nuanced”, yet DBS’s Chief Investment Office (CIO), under the leadership of Hou Wey Fook, advises investors to stay invested, particularly in equities.
Following the Republican sweep last November, the DBS CIO team maintains that its long-standing “barbell” strategy remains sound. With President Donald Trump’s new administration in place, they anticipate the fulfilment of his pledges for further tax cuts and expansionary fiscal policies. Additionally, to the dismay of trading partners, they expect tariff hikes that could exacerbate the ongoing trade war.
