To The Moon

Great to attend the Amundi Investment Solutions #MarketOutlook, offering a comprehensive view on what to expect after a surprisingly resilient 2025 marked by strong equity performance despite persistent tariffs. The general mood is cautiously optimistic, advocating for diversification amidst shifting geopolitical and technological landscapes. Kenny Loh, CFP® AEPP® IBFA MBAKenny Loh, CFP® AEPP® IBFA MBA Kenny Loh, CFP® AEPP® IBFA MBAKenny Loh, CFP® AEPP® IBFA MBA 𝐆𝐥𝐨𝐛𝐚𝐥 𝐄𝐜𝐨𝐧𝐨𝐦𝐲 & 𝐏𝐨𝐥𝐢𝐜𝐲 𝐒𝐭𝐚𝐧𝐜𝐞 🟢Resilience continues: The global economy is proving resilient, with expectations that the US will avoid a hard landing in 2026, though fiscal policy will be doing much of the heavy lifting. 🟢Inflation & Rates: While inflation is sticky, it's no longer rising, allowing for the continuation of policy normalization. Policy support is anticipated to help keep markets growing. 🤖 𝐓𝐡𝐞 𝐀𝐈 𝐑𝐞𝐯𝐨𝐥𝐮𝐭𝐢𝐨𝐧 (𝐍𝐨𝐭 𝐚 𝐁𝐮𝐛𝐛𝐥𝐞) 🟢AI is a secular growth driver and is not considered a bubble, but rather an early stage of a revolutionary technology. 🟢A Bipolar AI World: The AI race is a key theme in the US-China great power competition. The US currently leads in AI research, while China leads in AI business and consumerism. 🟢Broadening the Theme: Investors should diversify the AI theme beyond the US "Mag 7," adding the "China 8." The AI capex cycle also points to opportunities in the Industrial sector. 𝐒𝐡𝐢𝐟𝐭𝐢𝐧𝐠 𝐌𝐚𝐫𝐤𝐞𝐭𝐬 & 𝐃𝐢𝐯𝐞𝐫𝐬𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧 🟢US Equities Expensive: US equity valuations are a point of caution, with the Shiller P/E near 40x. Fundamentals are also changing, with slowing growth and rising policy headwinds. 🟢EM Returns to the Spotlight: Emerging Markets (EM) look attractive due to reasonable valuations and the expected weakening of the US dollar (de-dollarization trends). EM Local Currency and Fixed Income are particularly favored, benefiting from central bank rate cuts and the weaker USD. 🟢Geopolitical Risks: Geographical risks are elevated as the US’s global power is seen to be weakening, leading to a multi-polar political world. Firms and nations are actively trying to reduce dependency and over-reliance, positioning portfolios to manage rivalry in a controlled manner. 🌐 𝐀𝐬𝐬𝐞𝐭 𝐀𝐥𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧 𝐅𝐨𝐜𝐮𝐬 🟢Stay Invested, but Diversify: The core recommendation is to stay invested but diversify across asset classes (including Gold) and regions. 🟢Europe & Asia: Increase exposure to Europe (attractive valuation, Industrial and Defence/AI plays) and parts of Asia (Taiwan semiconductors, India domestic demand, ASEAN manufacturing). 🟢Fixed Income: Add European Fixed Income to diversify from US fixed income exposure. Kenny Loh, CFP® AEPP® IBFA MBAKenny Loh, CFP® AEPP® IBFA MBA The prevailing view is to position portfolios now for a world defined by rivalry, technological acceleration, and a push toward multipolarity. 👉Follow Kenny Loh Kenny Loh is a distinguished MAS Licensed Wealth Advisory Director with a specialization in holistic investment planning and estate management. He excels in assisting clients to grow their investment capital and establish passive income streams for retirement. Kenny also facilitates tax-efficient portfolio transfers to beneficiaries, ensuring tax-efficient capital appreciation through risk mitigation approaches and optimized wealth transfer through strategic asset structuring. You can join his Telegram channel #REITirement – SREIT Singapore REIT Market Update and Retirement related news. https://t.me/REITirement For Investment Advice or Portfolio Review, DM kennyloh@fapl.sg for 1 hour complimentary discussion.