DBS Bank’s Chief Investment Office has released its 3Q25 Investment Insights report, titled “The Global Pivot,” which outlines the bank’s perspectives on asset allocation, global macroeconomics, and investment strategies. The report comes as global equities have rebounded impressively in the second quarter, despite ongoing tariff chaos and policy uncertainties from the US.
The report emphasises the importance of staying invested in the market, with Chief Investment Officer Hou Wey Fook noting, “Time in the market beats timing the market.” The insights highlight a new world order characterised by self-sufficiency and protectionist trade policies, alongside the transformative impact of AI-powered technologies.
Key investment themes identified include slower global growth due to escalating Middle-East conflicts and US policy uncertainties, with a focus on investment-grade (IG) credit for income generation. The report advises against ultra-long duration bonds due to curve steepening risks. Technology and AI equities remain central to DBS’s investment conviction, with a preference for Asian dividend plays and European beneficiaries of fiscal stimulus.
DBS also underscores the importance of alternatives, particularly gold, which is expected to remain well-bid. The report suggests that hedge funds and private assets can provide non-market directional “alpha” returns, enhancing portfolio resilience.
As the global economic landscape continues to evolve, DBS’s insights offer guidance on navigating these changes, with a focus on technology, gold, and income-generating assets. The bank’s strategic calls aim to address the challenges and opportunities presented by the current economic environment.
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