Temasek Chief Investment Officer Rohit Sipahimalani said global markets face two main risks heading into 2027: a reversal in the AI trade and persistent inflation that could push interest rates and bond yields higher, eventually forcing a repricing in equities. He said an unwind in the AI trade is the biggest risk, though he does not currently see it as imminent. As of the end of March 2026, Temasek’s net portfolio value stood at S$518 billion, or about $405 billion. The firm plans to raise the share of AI-related investments from roughly 6% today to as much as 15% by 2031. At the same time, Temasek is making its AI exposure more liquid, with the share of public-market assets in that exposure set to rise from about 50% to 70% to 75%, allowing it to adjust positions more quickly if the sector changes fast. Sipahimalani also warned that if inflation stays elevated and lifts rates and long-dated bond yields, the result could be pressure on both richly valued stocks and capital-intensive AI projects. Temasek said it remains positive on AI over the long term while taking steps to reduce repricing risk.
Singapore state investor Temasek sees two main risks for global markets as 2027 approaches, according to Chief Investment Officer Rohit Sipahimalani: a reversal in the AI trade and persistent inflation that could drive interest rates and bond yields higher and eventually trigger a repricing in equities.
Sipahimalani said 「A reversal in the AI trade is the biggest risk」, while adding that he does not currently believe that risk is about to materialize.
As of the end of March 2026, Temasek’s net portfolio value reached S$518 billion, or about $405 billion. The firm plans to increase the share of AI-related investments from about 6% at present to as much as 15% by 2031.
Still, Sipahimalani said Temasek is increasing the liquidity of its AI investments. It plans to raise the share of public-market assets within its AI exposure from about 50% to 70% to 75%, giving it more flexibility to adjust positions if the sector shifts quickly.
He also warned that if inflation persists and pushes up interest rates and long-term bond yields, that could create a double hit for richly valued stocks and capital-intensive AI projects.
Temasek said it has not changed its long-term positive view on AI, but is trying to reduce the risk of a market repricing by increasing the share of public-market assets and improving liquidity.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
