DBS Bank’s Chief Investment Office has released its 4Q25 CIO Insights report, “Ride The Trend,” offering strategic guidance on asset allocation and investment themes. The report emphasises the importance of staying invested in the current market climate, particularly in technology and Asia ex-Japan equities, despite global economic uncertainties.
The report notes that the bank’s Barbell portfolio, which balances income-generating assets with growth equities, has achieved a 16.3% net return year-to-date. Hou Wey Fook, Chief Investment Officer at DBS Bank, stated, “Time in the market beats timing the market,” underscoring the importance of maintaining investments through market fluctuations.
DBS anticipates a slowdown in global growth due to trade tariff uncertainties but does not foresee a US recession. The US economy is expected to be bolstered by AI-related capital expenditure, fiscal stimulus, and lower interest rates. The report suggests that these factors create a favourable environment for risk assets.
Key investment strategies include maintaining an overweight position in technology stocks and Asia ex-Japan equities, which are poised to benefit from valuation discounts and potential fund inflows. Additionally, the report advises hedging against market volatility with investments in gold, hedge funds, and private assets.
DBS also highlights the potential for investment-grade credit as the Federal Reserve continues its rate-cutting cycle. The report concludes with a call for portfolio diversification to manage risks amidst ongoing policy uncertainties and fiscal concerns.
