Having attended the DBS Private Bank 2H2019 Market Outlook event, I thought I share a brief summary of what was being discussed and some of the more popular/relevant questions that were asked during the Q&A session.
DBS shared on what they called a Barbell Strategy as seen in the diagram below.
It essentially recommends splitting your portfolio into 2 portions – Growth and Income. On one hand, the Growth portion captures the upside potential from exposure to secular growth trends such as Cloud Computing, AI, Millennial Wave, etc. It is the bank’s view that in the age of digitalisation, traditional sectors are starting to face unprecedented disruption. Hence, the global investment landscape is getting redefined and it is no more “business as usual”. Therefore, having a portion of the portfolio capturing these changing trends would be ideal.
On the other hand, the Income portion generates a recurring and robust