How to invest S$50,000 amid global volatility, according to wealth experts

[SINGAPORE] Global markets have been on a rollercoaster ride this year amid tariff moves, persistent inflation, job worries and political tensions.

US stocks plunged to lows in April on US President Donald Trump’s “retaliatory” tariffs, but quickly bounced back, with market performance showing resilience despite ongoing risks. The bond market too suffered sell-offs a couple of times this year on similar worries.

China and other Asian markets were also volatile earlier this year, initially gaining from the optimism over the DeepSeek-driven artificial intelligence (AI) movement, but falling on tariffs as well. Since then, flows into China markets have been driven by government stimulus and a lack of alternatives, with some investors staying cautious on US stocks.

Investors are watching Japanese markets closely, with a choppy yen this year and the benchmark index Nikkei 225 also volatile amid political uncertainty.

Amid the turbulence, analysts said Singapore stands out as a safe haven.

Property investment activity in the city-state rebounded in Q2 2025, with total investment volume up 14.7 per cent on the quarter at S$7.6 billion, a Jul 16 report by Colliers showed. 

This comes even as tariff-driven policy uncertainty has led to pauses in business spend and capital expenditure, said Manish Tibrewal, co-founder of Singapore-based multi-family office Farro Capital.

He noted that geopolitical risks were at their highest levels since World War II, with deglobalisation and the ongoing trade war potentially resulting in sticky inflation and lower or negative growth.

Amanda Ong, chief executive for Singapore at digital wealth platform Arta Finance, highlighted that markets have remained largely resilient, despite ongoing geopolitical tensions and mixed economic signals. 

“While short-term volatility may persist, history shows that markets often absorb geopolitical shocks without lasting impact, especially when critical supply channels remain undisrupted,” said Ong.

Amid this volatility, Farro Capital’s Tibrewal, OCBC’s head of wealth advisory Aaron Chwee and Arta’s Ong spoke to The Business Times about how investors might allocate a sum of S$50,000 across asset classes.

High innovation mega-cap equities, private equity, Singapore Reits: Farro Capital

Tibrewal believes that the current macro environment warrants a well-diversified portfolio.

He noted that global superpowers, namely the US and China, are dominant innovation hubs, and recommended that investors consider diversifying their portfolio with the following allocations:

• Equities: 50 per cent
• Hedge funds: 10 per cent
• Private equity: 20 per cent
• Real estate: 10 per cent
• Gold or silver: 10 per cent

When it comes to equities, investors might consider adopting a barbell investing approach that focuses on high-innovation mega-caps and high-dividend value stocks, said Tibrewal. They could further diversify their investment in this asset class based on geography.

Of the 50 per cent allocated to equities, 25 per cent could go to US equities and 10 per cent to China equities. The remaining 15 per cent could be equally distributed across Europe, Singapore and India equities, with a 5 per cent allocation for each region.

Tibrewal highlighted that hedge funds and private equity are asset classes that offer long-term compounding effects.

The 10 per cent allocation for hedge funds could be channelled to US ones and likewise, the 20 per cent allocation for private equity may also be directed to the US, he said. While hedge funds generally require a large minimum sum to invest in, there are hedge fund ETFs which are more accessible. But investors should take note that some hedge fund strategies can have a higher level of risk.

The 10 per cent allocation assigned to real estate could be directed towards assets in Singapore. He noted that real estate investment trusts offer exposure to the asset class.

Europe, Asia ex-Japan equities, high-quality bonds with short to medium maturities preferred: OCBC

Chwee is optimistic on equities, with a preference for Europe and Asia ex-Japan (China, Hong Kong, Singapore) equities.

He said that individuals with a S$50,000 investing sum could consider the following allocation:

• Equities: 50 per cent
• Bonds: 40 per cent
• Alternatives, such as gold: 5 per cent
• Cash: 5 per cent

Time-horizon wise, investors should leave their investments in their respective asset classes for at least 12 months.

They should review their portfolio regularly, with a professional financial adviser, especially if their investment goals change over time, he added.

In the fixed-income space, high-quality, investment-grade bonds with short-term (one to three years) and medium-term (three to seven years) maturities are preferred, because they are less susceptible to rate volatility and provide more stability against future volatility, Chwee said.

However, investors who already hold bonds with longer maturities may continue to do so as these serve as “portfolio insurance” if the risk of a US recession recurs, he added.

Core allocations to equities, fixed income ETFs: Arta

At a S$50,000 level, investors’ goals should be to build a strong, diversified foundation, said Ong.

“A well-diversified approach across asset classes like equities, high-quality bonds and private-market investment alternatives can help manage risk while remaining exposed to potential upside,” she said.

Portfolios should be positioned with resilience in mind, as diversification, compounded returns and resilience against market shocks are benefits that yield value over time.

With this in mind, investors should take a long-term investment horizon of 10 years or more instead of reacting to headlines and structuring their portfolios around a short-term outlook – such as for one year.

“Rather than trying to time markets, phasing into investments can help navigate uncertainty while keeping long-term goals on track,” Ong said.

A holistic portfolio could be divided into a core portfolio with a 90 per cent allocation and a satellite portfolio with 10 per cent, she added.

Within the core portfolio, 40 per cent could go to fixed-income, exchange-traded funds (ETFs), with the following breakdown:

• Investment-grade US dollar-denominated bonds (16 per cent)
• International ex-US bonds (16 per cent)
• Treasury inflation protected bonds (4 per cent)
• Investment-grade US corporate bonds (4 per cent).

The remaining 50 per cent could go into equities ETFs, with the following breakdown:

• US market equities across large, mid and small-cap companies (32 per cent)
• Developed markets ex-US equities (12 per cent)
• Emerging markets equities (6 per cent)

The remaining 10 per cent allocation may be set aside for a satellite portfolio dedicated to specific themes, depending on an investor’s beliefs, as such satellite investments can provide tactical exposure to specific opportunities, Ong said.

These themes could include AI, clean energy and any specific single stock (besides ETFs).