CIMB has outlined a strategic approach for investors in 2026, emphasising the importance of discipline, diversification, and derisking amidst the growing influence of artificial intelligence (AI) and Asia’s rising investment appeal. Jason Kuan, Director of Investment Research and Advisory at CIMB Singapore, advises focusing on high-quality stocks, expanding exposure to Asian markets, and incorporating hedging strategies to manage market volatility.
CIMB’s strategy, dubbed the ‘3Ds’, encourages investors to remain disciplined by selecting quality stocks and credit, diversify by investing in stable Asian markets like Singapore and Malaysia, and derisk through gold hedge strategies and private equity. “Investors may want to be more selective than just focusing on the US market,” Kuan stated, noting the high US stock prices and potential volatility from trade policies.
The bank also highlights Asia’s expanding role in the global AI supply chain and ongoing market reforms as key factors positioning the region as a prime investment destination. Countries like Japan, South Korea, and China are enhancing governance and liquidity, creating a supportive environment for earnings and valuations.
CIMB recommends a balanced portfolio approach, including Asian equities and high-quality corporate bonds, to navigate the anticipated volatility in a weakening US dollar environment. The bank suggests focusing on bonds with short-to-mid durations, particularly those denominated in AUD and GBP, to stabilise portfolios.
As global markets evolve, CIMB stresses the importance of maintaining a diversified portfolio to achieve steady, risk-adjusted returns. The bank’s 2026 outlook underscores the need for measured exuberance in investment strategies.
