By Gwendoline Tan
If you’ve only got a minute:
- A new year is an opportune time to review investments and look at new market opportunities and investing ideas.
- On the income end of the Barbell strategy, consider investing in high quality bonds and S-Reits for dividend plays. On the growth end, consider long-term secular trends.
- Before making any investment, take note of your investment objectives, investment capital, time horizon, and risk tolerance levels, among other things.
“The beginning is the most important part of any work.”
These words from Greek philosopher Plato are a wise reminder that a strong start sets the foundation for what follows.
The crossing of one year into the next marks a natural moment for us to re-examine our goals and set new intentions across different areas of our lives. Of course, this includes how we plan for our future financially.
In 2026, the theme of longevity stands out. Singapore has undoubtedly seen a steady increase in both quality and quantity of life each year, due to factors including our advanced healthcare system and healthier lifestyle choices overall.
With longer life and health spans, it becomes all the more crucial for us to consider how to position our investment portfolios, taking care to not outlive our resources. By staying fully invested and well diversified across quality equities, bonds, and alternatives, we will be set to outpace inflation in the long game.
Before delving into some investment ideas for 2026, let’s look back on the defining forces of 2025.
2025: A year of extremes
In a flash, half the decade has gone by. Unsurprisingly, markets have really ebbed and flowed during this time. Through 2025, market sentiment was shaped by heightened policy and geopolitical uncertainty.
US President Donald Trump’s time in office thus far has brought with it a string of unprecedented events. This includes the breakdown of the Transatlantic alliance, a global tariff war, and even a record 43-day US government shutdown.
Persistent deficits and spiralling debt on the back of unsustainable fiscal largesse mean that, moving forward, the US Federal Reserve (Fed) is likely to prioritise keeping interest rates (and thus financing costs) low. With that, we see rising fiscal dominance risk and growing inflation concerns in the country.
Investment ideas for 2026
Looking ahead to 2026, investors may face a tricky mix. Valuations across asset classes remain elevated amidst ongoing policy and macro uncertainty. At the same time, if liquidity conditions improve and rate cuts continue, staying in cash for too long can be costly, especially if inflation proves to be “sticky”.
In this new normal, building portfolio resilience and longevity remains key to navigating potential market fluctuations.
DBS Chief Investment Office (CIO) continues to advocate a barbell strategy which strikes a balance by combining exposure to growth equities on one end and income assets on the other.
This approach has demonstrated its effectiveness through recent market volatility, as seen in the CIO’s flagship Barbell Portfolio which delivered a net return of 19.4% year-to-date (as at 27 November 2025). Since its inception in August 2019, the portfolio has generated a total return of 67.7% (annualised return of 8.6%).
Read more: What is the Barbell Strategy?
Here are 5 investment ideas to consider that can work with this approach.
1. Short- to medium-term high-quality bonds
As the Fed continues to keep interest rates low, returns on cash and other short-term instruments like fixed deposits and Treasury bills (T-bills) are likely to come down as well.
The effects of this can already be seen, with yields of Singapore T-bills falling from around 3% at the start of 2025, to 1.6% and 1.35% for 6-month and 1-year issues at the end of the year. Given rising inflation, investors can consider other fixed income opportunities with higher returns.
digiPortfolio’s SaveUp portfolio, provides a relatively low-risk exposure to high quality, short duration bonds. As of end-December 2025, the SaveUp portfolio was generating a yield of 3.37% p.a. with IG credit quality. The portfolio’s yield is significantly higher than its long-term projected range of 1.5 to 2.5% p.a..
Read more: digiPortfolio: A robo-advisor for all
Find out more about: digPortfolio
As a whole, DBS CIO continues to emphasise on quality, focusing on investment grade (IG) corporate bonds with a credit rating of at least BBB. Short- to medium-term bonds offer attractive yields relative to cash and T-bills, while adding stability and providing income.
The sweet spot for bond maturity remains around the 5-7-year range, which balances yield and interest rate sensitivity.
Read more: A beginner’s guide to bonds
2. Asia ex-Japan equities
As US rate cuts take effect and a weaker USD encourages capital flows out of the US, Asia ex-Japan stands out as a compelling growth region.
Within North Asia, DBS CIO expects growth to be spearheaded by technology giants in Greater China, Korea, and Taiwan. This is further supported by rising consumption in Southeast Asia, coupled with Singapore’s stabilising role as a safe haven.
Despite strong recent performance, Asia ex-Japan equities are trading at a discount of approximately 32% to its global peers. This compelling pricing makes it a bargain opportunity and provides a buffer against potential market dips amidst volatilities.
3. I.D.E.A. companies
I.D.E.A is an acronym coined by DBS CIO which stands for Innovators, Disrupters, Enablers, and Adapters, in reference to a group of companies that are secular winners in the digital word.
AI “adapters” for productivity gains
AI undoubtedly remains to be all the rage, with AI stocks rallying sharply in 2025.
It is only natural, then, for some investors to wonder whether echoes of the early-2000s Technology, Media, and Telecommunications (TMT) bubble are starting to emerge. While short-term price corrections are to be expected, the fundamentals supporting Big Tech look meaningfully different, with capital expenditure being funded by real earnings rather than debt.
To balance risk and reward, DBS CIO favours investing into the sector via “adapters”. These are companies that embrace AI to improve productivity, streamline operations, and lift profitability, allowing investors to participate in AI’s upside while managing funding and valuation risks.
Opportunities in healthcare
US Healthcare also fits within this approach as a defensive innovation play.
After lagging broader markets, the sector has started to regain momentum, supported in part by the growing use of AI in drug discovery and testing.
With valuations still undemanding in relation to the S&P 500, US healthcare offers investors opportunities to seek value in an elevated market.
4. Singapore Reits
While Singapore-listed real estate investment trusts (S-Reits) saw significant recovery in 2025, they continue to look reasonably valued, with prices trading below that of their underlying assets.
As interest rates ease, S-Reits stand to benefit. Since S-Reits typically borrow on shorter-term debt, lower benchmark rates can translate into lower financing costs over time, helping to support distributions and earnings growth.
On top of this, S-Reits are backed by Singapore’s stable regulatory environment, strong governance, and position as a regional wealth management hub.
DBS CIO anticipates that S-Reits will offer dividend yields of around 5.7% this year, making it an attractive option over cash or fixed deposits.
Read more: Investing in S-Reits for income growth
5. Gold
As an alternative asset, gold continues to play a crucial role in well-diversified portfolios, providing a hedge against market volatility and geopolitical uncertainty.
According to DBS CIO, the long-term investment case for gold remains compelling in 2026 for a number of reasons. Ongoing concerns around US fiscal and debt sustainability, geopolitical and policy risks, and fears over dollar debasement continue to support demand. This is further reinforced by persistent buying from central banks and institutional investors.
Looking ahead, DBS CIO forecasts the prices of the precious metal to reach US$5,100 per ounce in 2H26, with a longer-term target of US$6,600 per ounce by 2030.
Read more: Investing in gold
Find out more about: Thematic investing with DBS CIO Insights Funds
In summary
While these are some investment ideas for you to consider, do remember that it is vital for all investors to understand themselves and their needs. This means taking note of your investment objectives, financial situation, time horizon, and risk tolerance levels.
To help simplify your decision-making process, investment experts at DBS have curated an essential list of funds called CIO Insights Funds, which form a steady base for building an investment portfolio. This includes index funds as well as ready-made discretionary portfolio solutions like digiPortfolio to provide even broader diversification.
By employing a diversified investment strategy and staying adaptable to changing market conditions, you can build resilient portfolios to help you grow your wealth over the long run.
Read more: I’m ready to invest, how can I start?
Find out more about: CIO Insights Funds
