Our Summary:Temasek Investment Chief Rohit Sipahimalani has identified two key risks facing global markets in 2027: the unwinding of the AI trade and inflation, as well as the rates environment. Despite this, the firm plans to more than double its AI allocation by 2031. Sipahimalani also noted that AI can change quickly, making it essential to adjust exposure accordingly.

Our Summary:Temasek, one of Asia's largest investors, has warned that artificial intelligence and inflation are the biggest risks for global markets in 2026. The firm's investment chief, Rohit Sipahimalani, has singled out the pair as the biggest risks ahead, citing concerns over US capital expenditure on AI infrastructure and the potential for valuation pressure if returns do not materialize. Inflation is the second half of the warning, and the two risks are more connected than they look, with AI-driven demand for semiconductors and energy feeding into higher prices. Temasek aims to raise AI-related investments to 15% of its portfolio by 2031, despite the warnings.