Investing Updates: Singapore a ‘safe harbour’ amid global volatility with Singdollar set to gain: Julius Baer

Source:

https://www.businesstimes.com.sg/companies-markets/singapore-safe-harbour-amid-global-volatility-singdollar-set-gain-julius-baer

ChatGPT:

Julius Baer’s 2026 market outlook positions Singapore as a “safe harbour” amid heightened global volatility, with expectations that the Singapore dollar and local equities will perform well. The Swiss private bank forecasts the Singdollar to appreciate and projects Singapore corporate earnings growth of about 8 per cent in 2026. Combined with Straits Times Index dividend yields of around 5 per cent, this could translate into total returns of roughly 10 per cent in Singapore dollar terms.

The bank highlighted South-east Asia as an area of opportunity, particularly Vietnam, which is benefiting from the “China plus one” manufacturing strategy and ongoing infrastructure development. Julius Baer said its positive outlook is largely unchanged despite uncertainty stemming from renewed tariff threats by the Trump administration, noting that markets have so far shown limited reaction. While geopolitical developments may increase short-term volatility, they are not expected to derail longer-term market trajectories.

Julius Baer urged investors to move away from a traditional buy-and-hold strategy towards more tactical and diversified approaches. While artificial intelligence remains an important growth driver, global policy divergence is creating broader opportunities across regions and sectors. The bank pointed to defensive sectors such as global healthcare and cyclical stocks in Europe as attractive diversification options. Healthcare, in particular, is seen as undervalued, trading at a significant discount to global equities while delivering stronger-than-expected earnings growth and increased merger and acquisition activity.

On currencies, the report expects the US dollar to weaken due to slower growth, lower interest rates, and persistent trade and debt imbalances. Safe-haven alternatives such as the Swiss franc and Singapore dollar are expected to benefit. Precious metals, supported by central bank buying, remain attractive but volatile, prompting recommendations for tactical hedging and buying on price weakness. Overall, Julius Baer emphasised active rebalancing and global diversification to navigate a more uncertain investment landscape.