Best Ideas for 2026, and the Barbell Approach to Investing
•March 9, 2026
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Why It Matters
The barbell approach offers a proven, low‑volatility pathway to capture AI‑driven growth while safeguarding wealth against inflation and market turbulence, making it a vital blueprint for investors facing uncertain 2026 markets.
Key Takeaways
- •AI will dominate as the primary secular growth driver.
- •Scarcity assets like gold gain appeal amid fiat over‑supply.
- •Singapore REITs offer 5‑6% yields, strong income source.
- •Barbell strategy splits portfolio between growth equities and income bonds.
- •Clients’ cash‑heavy allocations erode purchasing power due to inflation.
Summary
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.
Original Description
Markets are volatile, but smart strategies can deliver stable returns. What if you could balance explosive growth with steady income—all while protecting against inflation? DBS chief investment officer Hou Wey Fook reveals the "barbell approach" that's delivered 8.6 per cent annual returns through major downturns. From AI winners to gold's scarcity play, discover investment themes carrying portfolios through uncertainty. Real strategies, proven results, actionable insights.
Synopsis: Learn to protect and grow your wealth in this monthly Business Times podcast series for affluent individuals, hosted by BT wealth editor Genevieve Cua.
Highlights of the podcast:
04:08 Gold and scarcity assets
07:41 Cash vs. investment strategies
12:49 The barbell approach
14:31 How to DIY the barbell approach
Send your questions, thoughts, story ideas, and feedback to btpodcasts@sph.com.sg (mailto:btpodcasts@sph.com.sg) .
Written and hosted by: Genevieve Cua (gen@sph.com.sg)
With Hou Wey Fook, chief investment officer, DBS
Edited by: Howie Lim & Claressa Monteiro
Produced by: Genevieve Cua, Howie Lim & Chai Pei Chieh
A podcast by BT Podcasts, The Business Times, SPH Media
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Do note: This podcast is meant to provide general information only. SPH Media accepts no liability for loss arising from any reliance on the podcast or use of third party’s products and services. Please consult professional advisors for independent advice.
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