The Business Times (Singapore)

Best Ideas for 2026, and the Barbell Approach to Investing

The WealthBT podcast spotlights DBS’s chief investment officer Wayfolk’s outlook for 2026, centering on the barbell investment framework that pairs high‑growth secular themes with stable income assets. He outlines five headline ideas – artificial intelligence as the dominant growth engine, scarcity‑driven assets such as gold, longevity‑focused healthcare breakthroughs, a re‑allocation toward undervalued Asian markets, and income‑generating vehicles like Singapore REITs and investment‑grade bonds. Wayfolk stresses that AI will reshape the economy, creating clear winners and losers, while the Fed’s renewed quantitative easing fuels fiat over‑supply, making scarce commodities attractive. He cites gold’s physical reserves – roughly three to four Olympic‑size pools – and central‑bank buying as tailwinds, and points to Singapore REITs delivering 5‑6% yields (about 7.5% in USD) as a reliable cash‑flow source. The discussion also highlights the perils of cash‑heavy portfolios, which now sit at roughly 30% of client allocations, eroding real wealth amid 3‑4% inflation. Concrete examples reinforce the thesis: Nvidia, bought seven years ago, has multiplied 45‑fold, illustrating the power of secular growth picks. The barbell fund, launched seven years ago with about $10 billion AUM, has generated an 8.6% annualized net return despite three sharp market drawdowns, including the 2022 rate‑hike shock. Wayfolk also notes gold’s limited above‑ground supply and the emptying of COMEX and LBMA vaults as bullish signals. For investors, the takeaway is clear: adopt a disciplined barbell mix – roughly 40‑50% income assets, 40% growth equities, and a modest 10% diversifier – to capture upside while preserving capital. Shifting from cash to diversified, liquid bond funds or high‑quality REITs can protect purchasing power, and DIY investors can replicate the approach using low‑cost ETFs and sector‑focused funds. The strategy’s proven resilience suggests it can navigate the volatility expected in 2026 and beyond.