The Business Times
business-time-50

US inflation, not geopolitics, remains biggest risk to markets in 2026, says this chief investment strategist

LGT Private Banking’s Stefan Hofer cautions that market volatility will be ‘much higher’ this year

Summarise
google-preferred-sourceAdd BT as a preferred source
Vivien Shiao

Vivien Shiao

Published Wed, Jan 21, 2026 · 07:54 PM
阅读简体中文版 (beta)
    • Stefan Hofer of LGT says: "We strongly view that in the US, Europe and most advanced economies, there’s going to be a ramping up of infrastructure spending, and that is a great investment opportunity.”
    • Stefan Hofer of LGT says: "We strongly view that in the US, Europe and most advanced economies, there’s going to be a ramping up of infrastructure spending, and that is a great investment opportunity.” PHOTO: LGT PRIVATE BANKING

    [SINGAPORE] A resurgence in US inflation – rather than geopolitical flashpoints or political rhetoric – poses the biggest threat to financial markets in 2026, said Stefan Hofer, chief investment strategist of LGT Private Banking.

    While recent developments, including fresh tensions between the United States and Europe following President Donald Trump’s comments on Greenland, have shaken global markets and weighed on the US dollar, Hofer noted that investors are ultimately guided by economic fundamentals rather than political noise.

    In an interview with The Business Times, Hofer explained that the latest market sell-off reflects heightened sensitivity to headlines, but not a fundamental shift in how investors assess risk.

    Investment outlookOutlook 2026Trump tariffsUS inflationGreenland

    TRENDING NOW

    Eugene Lai (left) says that he was sharing a view with Tan Chian Khong that the board needed a refresh and that it was not an explicit direction to resign.

    CSE Global independent director quits after clashes with chairman Eugene Lai over board refresh

    Some industry watchers wonder if Orchard Road can hold its own next to competing retail destinations, both global and local.

    What’s wrong with Orchard Road? Experts weigh in on the street’s cachet and its future

    Siranudh Scott had caused an internet sensation with a video accusing his brother of allegedly abusing him during his childhood years.

    ‘I felt like dying’: Thai Singha beer scion speaks up after disclosure of alleged sexual abuse

    The exterior (left) and interior (right) views of Waterwall House, featuring glass interfaces, open voids, split levels and raw concrete walls.

    Rare brutalist Singapore house opens to the public before changing hands

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More