Temasek, Singapore's state-owned investment company, says an unwinding of the artificial-intelligence trade is the biggest risk facing markets. Chief investment officer Rohit Sipahimalani told the Milken Institute Asia Summit in Singapore that the risk is not imminent, but that market "bumps" could occur in 2027.
Temasek's position is significant because it manages a large global portfolio, and its warnings are closely watched by investors. The comment points to concerns about how heavily market gains have come to depend on AI-related stocks, though the source does not detail specific triggers for a reversal.
The firm is not predicting an immediate correction. Rather, it sees the AI trade as a source of potential volatility on a two-year horizon, with 2027 singled out as a possible period of turbulence.