- Macro Strategist, Hedge Fund Group
Skip to main content
- Funds
- Capabilities
- Insights
- About Us
FEATURED EQUITY FUNDS
FEATURED FIXED INCOME FUNDS
Asset classes
Singapore, Individual
Changechevron_rightFEATURED EQUITY FUNDS
FEATURED FIXED INCOME FUNDS
Asset classes
The views expressed are those of the author at the time of writing. Other teams may hold different views and make different investment decisions. The value of your investment may become worth more or less than at the time of original investment. While any third-party data used is considered reliable, its accuracy is not guaranteed.
It is so easy to get lost in the weekly market gyrations and constant flow of headlines, but it is worth taking a step back and looking at the bigger macro picture. And that broader perspective suggests that we are currently in a “twilight zone”, caught between two conflicting world views:
While the prevailing narrative supports high nominal growth and therefore risk assets, it comes at a price. And the longer it goes on, the greater the risk of a sudden reversal as reality gains the upper hand and markets start questioning the impact of the current stimulus on government debt sustainability.
All central banks are cutting rates or are expected to do so in the near term. The only market debate is how fast and by how much. Moreover, most major countries are loosening fiscal policy. And, yet as we discussed in our mid-year outlook, more stimulus may not be what the world needs right now, given:
Yes, the world could be “saved” by the rapid investment in AI and a wave of deregulation as both have the potential to raise productivity and give the cycle longevity. There are tentative signs that AI may lead to a rapid improvement in productivity, but it is also likely that some of the capital flowing into AI may be misallocated or that near-term gains may be overhyped. Likewise, deregulation can boost productivity by removing unnecessary hurdles, but we should not discount the risk of unintended consequences that are ultimately negative for productivity. At the same time, the opposing forces of ageing demographics, reduced migration and deglobalisation are gathering pace. It is impossible to tell what the net timing and net impact of these countervailing forces will be.
What we know, however, is that neither fiscal nor monetary policy appears to be overly tight. Yet, interest rates globally are still coming down while governments are conducting the largest and most coordinated fiscal loosening outside COVID since 2010, when global unemployment was double today’s rate and inflation was less than 1%.
Tariffs are certainly causing macro volatility but ultimately equate to a relative growth shock with differing impacts between countries and segments of the economy. With all large countries loosening policy into still tight labour markets, high nominal growth (and inflation) is likely to stay and that should remain a good environment for risk assets.
However, inflation-led growth does not constitute a “Goldilocks” scenario as it eventually will necessitate higher rates, especially as governments have failed to let high inflation erode their debts and keep building up deficits. At some point, bond markets will demand higher compensation for this profligate policy. It could also mean that yield curves keep steepening from here.
There is the distinct possibility that markets move abruptly out of today’s twilight zone and push government bond yields to levels that were unthinkable a few years ago, with major implications for all risk assets. Today, investors can take advantage of the favourable environment for risk assets. However, they may also want to consider preparing their portfolios for a very different environment, by optimising diversification and ensuring they have built in the necessary flexibility to respond to the associated risks and opportunities.
Experts
AI capex and the new credit cycle
Continue readingMultiple authors
AI’s Magnificent 7: What to understand about the ecosystem of artificial intelligence
Continue readingDisrupting the disruptors: China’s challenge to US AI
Continue reading2026 midyear geopolitical update: What “structural competition” means for investors
Continue reading3 reasons to believe in Chinese equities
Continue reading(Re)emerging markets: 10 reasons for optimism
Continue readingMultiple authors
China’s changing: Why you should be watching
Continue readingURL References
Related Insights
The most important midterm question?
As the mid-term elections approach, the things the election won't change may matter more than who wins and who loses.
Band-aids, bazookas, and boomerangs: Equity investing in a volatile US rate regime
With fiscal pressures and Treasury-market fragilities keeping bond yields volatile, Macro Strategist Juhi Dhawan outlines implications for equity investors.
Chart in Focus: Do strong earnings require a resilient economy?
Can earnings momentum continue if growth slows? This Chart in Focus explores the link between GDP growth and company earnings — and what investors may want to watch next across equity markets, AI investment, energy risks, and new issuance.
AI-driven market dispersion favors active selectivity
Headline market volatility may appear subdued, but dispersion across stocks and sectors is rising. Explore why AI-driven differentiation may favor active selectivity.
Tech Stocks as an Inflation Hedge: Is the Case Weakening?
Fixed Income Portfolio Manager Brij Khurana explores why US tech stocks may be a less attractive hedge against US inflation and currency debasement and how this could favor bonds.
By
AI stocks after the sell-off: why the long-term investment case may remain intact
Portfolio Manager Yash Patodia shares his perspectives on why recent volatility may be a positioning-driven unwind — not a broken thesis — and where selective, long-term opportunities are emerging across semiconductors and the wider AI value chain.
By
Oil market update: The long road to normalization
As geopolitical tensions in the Gulf region resume, our expert discusses recent oil market dynamics and their potential impact on inflation and the global growth outlook.
2026 midyear geopolitical update: What “structural competition” means for investors
Our expert explores how structural geopolitical competition is reshaping markets, raising risk premiums, and creating long-term investment implications across defense, energy, technology, supply chains, sovereign credibility, and portfolio resilience.
The rally and the reality
Can the markets remain resilient in the face of geopolitical disruption and inflation worries? We offer our views on the macro environment, AI-driven earnings, and the implications for equities, bonds, and commodities.
The state of commercial real estate
We explore how macroeconomic, demographic, and sector-specific trends are reshaping commercial real estate, and why selectivity by sector, asset, quality, and capital structure may matter more than broad asset-class exposure.
Warsh’s first FOMC: We have a task force for that
Our experts highlight new task forces, examine evolving inflation and labor dynamics, and contend that the Fed soon may need to choose between growth support and price stability.
URL References
Related Insights
Past results are not necessarily indicative of future results and an investment can lose value. Funds returns are shown net of fees. Source: Wellington Management
© 2026 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. The Overall Morningstar Rating for a fund is derived from a weighted average of the three, five, and ten year (if applicable) ratings, based on risk-adjusted return. Past performance is no guarantee of future results.
The content within this page is issued by Wellington Management Singapore Pte Ltd (UEN: 201415544E) (WMS). This advertisement or publication has not been reviewed by the Monetary Authority of Singapore. Information contained on this website is provided for information purposes and does not constitute financial advice or recommendation in any security including but not limited to, share in the funds and is prepared without regard to the specific objectives, financial situation or needs of any particular person.
Investment in the funds described on this website carries a substantial degree of risk and places an investor’s capital at risk. The price and value of investments is not guaranteed. The value of the shares of the funds and the income accruing to them, if any, and may fall or rise. An investor may not get back the original amount invested and an investor may lose all of their investment. Investment in the funds described on this website is not suitable for all investors. Investors should read the prospectus and the Product Highlights Sheet of the respective fund and seek financial advice before deciding whether to purchase shares in any fund. Past performance or any economic trends or forecast, are not necessarily indicative of future performance. Some of the funds described on this website may use or invest in financial derivative instruments for portfolio management and hedging purposes. Investments in the funds are subject to investment risks, including the possible loss of the principal amount invested. None of the funds listed on this website guarantees distributions and distributions may fluctuate and may be paid out of capital. Past distributions are not necessarily indicative of future trends, which may be lower. Please note that payment of distributions out of capital effectively amounts to a return or withdrawal of the principal amount invested or of net capital gains attributable to that principal amount. Actual distribution of income, net capital gains and/or capital will be at the manager’s absolute discretion. Payments on dividends may result in a reduction of NAV per share of the funds. The preceding paragraph is only applicable if the fund intends to pay dividends/ distributions. Performance with preliminary charge (sales charge) is calculated on a NAV to NAV basis, net of 5% preliminary charge (initial sales charge). Unless stated otherwise data is as at previous month end.
Subscriptions may only be made on the basis of the latest prospectus and Product Highlights Sheet, and they can be obtained from WMS or fund distributors upon request.
This material may not be reproduced or distributed, in whole or in part, without the express written consent of Wellington Management.
We seek to exceed the investment objectives and service expectations of our fund investors and their advisers worldwide
© Copyright 2026 Wellington Management Singapore Pte. Ltd. All rights reserved.
WELLINGTON MANAGEMENT FUNDS ® is a registered service mark of Wellington Group Holdings LLP.
Wellington Management Singapore Pte. Ltd., a private limited company incorporated in the Republic of Singapore. Address: 8 Marina Boulevard, Tower 1 #03-01 Marina Bay Financial Centre 018981. Licensed and regulated by the Monetary Authority of Singapore.