1H 2026 Investment Outlook1H 2026 Investment Outlook

Navigating Global Divergences: Opportunities Amid Shifts

1H 2026 Investment Outlook

Dr Neo Teng Hwee

Foreword

Global markets continue to evolve, shaped by uneven economic recovery and rapid technological progress. Investors today face a landscape where shifting growth patterns, innovation, and policy changes present both challenges and possibilities. Amid this complexity, opportunities often emerge for those who remain disciplined and forward-looking.

In our 1H 2026 Investment Outlook, we share the themes we believe will be most influential in the months ahead. We also outline how a diversified and selective approach can help portfolios capture growth while maintaining resilience against potential shifts.

This is also an opportune time to review your investment strategy and ensure it remains aligned with your long-term objectives. I encourage you to speak with your Relationship Managers and Client Advisors for tailored guidance on positioning your portfolio for the evolving environment.

We hope these insights guide your investment journey and reinforce our shared focus on long-term success. Thank you for your continued trust. We look forward to partnering with you in 2026.

Dr Neo Teng Hwee
Chief Investment Officer and
Head of Investment Products and Solutions
UOB Private Bank

Overview

Key themes to watch

A K-shaped economy

A K-shaped economy

The US economy remains distinctly K-shaped, marked by a divergence between booming corporate profits and AI-linked capital expenditure on one hand, and persistent weakness in lower-wage segments on the other.

This environment favours extending the maturities within a bond portfolio and focusing on sectors resilient to uneven demand, such as AI infrastructure and niche consumer plays, while avoiding companies that are affected by global trade tariffs or dependent on lower-income spending.

AI: From digital to physical

AI: From digital to physical

AI continues to dominate headlines, but the narrative is shifting from hype to monetisation. The most compelling opportunities lie in bottlenecks  such as AI chips, high-bandwidth memory and power infrastructure, where supply remains tight. Beyond software, AI’s next phase is “Physical Intelligence,” embedding cognition into the real world through frictionless interfaces, autonomous systems and mobility solutions.

Going global: EM (China) and Singapore

Going global: Emerging Market (China) and Singapore

Global diversification remains critical as competitive dynamics evolve. China’s ascent as a manufacturing and innovation hub is underscored by its growing Fortune Global 500 presence and leadership in sectors like electric vehicles and telecoms.

Meanwhile, Singapore equities should also benefit from governance reforms and global monetary easing. Sectors investors should keep an eye on are banks, REITs and industrials.

Additional Resources

Contact a UOB Advisor

Contact a UOB Advisor

Download Report

Download Report

Get more investment insights

Get more investment insights

Credits

Credits
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Managing Editor
  • Gidon Jerome Kessel
    Singapore and Regional Head,
    Deposits and Wealth Management,
    Personal Financial Services
Editorial Team
  • Abel Lim
    Head of Wealth Management Advisory and Strategy,
    Deposits and Wealth Management,
    Personal Financial Services
Editorial Team (cont’d)
  • Tan Jian Hui
    Wealth Management Advisory,
    Deposits and Wealth Management,
    Personal Financial Services
  • Low Xian Li
    Wealth Management Advisory,
    Deposits and Wealth Management,
    Personal Financial Services
  • Zack Tang, CMT, CFTe
    Wealth Management Advisory,
    Deposits and Wealth Management,
    Personal Financial Services
  • Low Jia Ling (Intern)
    Wealth Management Advisory,
    Deposits and Wealth Management,
    Personal Financial Services

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