Temasek International, the Singapore-based investment arm of state-owned investor Temasek, said an unwinding of the AI trade and inflation-driven rises in bond yields are its top risks for global markets in 2027.

At the Milken Asia Summit in Singapore on October 7, CIO Rohit Sipahimalani said an AI reversal does not look imminent but could still bring volatility. He added that inflation and higher rates could create a breaking point for equities.

Temasek has pledged to raise AI-related investments from 6% to as much as 15% of its portfolio by 2031. Sipahimalani said he wants more of that exposure in public markets so the firm can adjust faster if conditions change.

Higher long-term bond yields can pressure stocks by raising discount rates used to value future earnings and by making bonds more competitive with equities.

🔗 Source: Bloomberg

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