Bangkok: DBS forecasts 2026 as "The Long Game," facing risks of soaring debt, surging inflation, and a weakening dollar. DBS points out that the U.S. is facing fiscal risks from high public debt, triggering soaring inflation and a weakening dollar. It recommends protecting portfolios in 2026 through four key investments. As for gold prices, it expects a rebound to $5,100 per ounce.
According to Thai News Agency, Edwin Tan, Market Head of DBS, Thailand and Philippines, DBS Bank, revealed that yesterday DBS announced record pre-tax profits of S$13.1 billion in 2025, slightly higher than last year, while total revenue increased 3% to a new record high of S$22.9 billion.
Way Phuc Ho, Chief Investment Officer of DBS Bank, stated that the U.S. economy is entering an era of fiscal risk. Undermining the independence of the Federal Reserve, whether genuinely happening or merely a market perception, could reignite inflation concerns. The root cause of inflation is not taxes or supply constraints, but rather the lack of fiscal discipline in controlling public debt. For investors, he recommends a portfolio protection strategy, emphasizing real assets such as infrastructure, property, commodities, and precious metals, which have proven to outperform during inflationary cycles.
Way Phuc Ho estimates that hyperscalers alone will invest up to US$1.4 trillion in AI infrastructure between 2025 and 2027, while NATO's defense budget is projected to increase from 2% to 5% of GDP by 2035. For short-term strategic highlights in 2026, under a scenario where central banks increase liquidity and inflation is likely to rise, holding cash is not a viable option, the recommended investment approach focuses on four main themes: 1. Investing in companies that leverage AI to enhance efficiency; 2. Investing in real assets such as infrastructure, real estate, commodities, and precious metals to combat inflation; 3. Asian stock markets, excluding Japan, continue to perform well; and 4. Choosing investment-grade stocks and bonds over high-yield instruments, with gold still supported by the rising US debt crisis.
Regarding the current volatility in gold prices, DBS analysts believe that gold prices are expected to reach $5,100 per ounce in the near future, as the uptrend remains strong. As for the lowest price, DBS analysts anticipate it will not fall below $4,500 per ounce. Long-term holding of gold is recommended for those with sufficient funds, but short-term holding is not advised due to the risk of price volatility.