Investment Strategy - October 2026 – March 2027

Six-Month Market Outlook

October–November 2026

Reduce Risk, Secure Income: Review and reduce exposure to highly leveraged companies, speculative AI infrastructure and businesses with weak free cash flow. Consider 3–12-month US Treasury bills and short-duration investment-grade bonds for income and liquidity. UK gilts also offer attractive yields, with longer maturities providing potential capital gains if interest rates decline, but greater downside if yields rise.

November 2026–January 2027

Buy Quality, Not Hype: Look for market corrections to acquire financially strong companies with sustainable earnings, manageable debt and positive free cash flow. Monitor Nvidia, Microsoft, Alphabet and Broadcom, but consider staggered entry only when valuations are supported by earnings and independently funded customer demand. Avoid chasing short-lived rallies.

January–March 2027

Reassess and Act: If inflation declines, employment stabilises and corporate earnings remain resilient, consider increasing exposure to quality equities and selected longer-duration bonds. If inflation persists or earnings deteriorate, favour shorter-duration securities and liquidity.

Five Indicators to Watch: US employment, inflation, Brent crude, US Treasury and UK gilt yields, and AI capital expenditure relative to actual earnings and cash flow.

Bottom Line: Reduce excessive leverage now. Earn income from quality bonds. Buy strong businesses on meaningful corrections. Wait for evidence before re-entering expensive AI equities. Avoid speculative financing and preserve liquidity for better opportunities.

Important Disclaimer

As per Claremont Partners Pte. Ltd.'s usual disclaimer, this publication is for information only and does not constitute investment advice, an offer or solicitation. Claremont Partners serves Accredited Investors. Readers are responsible for their own investment decisions and associated risks. Past performance is not indicative of future results. All views are subject to change, and no returns are guaranteed.