Bank of Singapore – Supertrends, 2024

Investors are facing a new world order with increased fragmentation due to events like the Covid-19 pandemic, Russia's war with Ukraine, rising populism globally, and US-China rivalry. Governments are expected to increase spending on defense, healthcare, climate change, and inequality, leading to higher inflation and interest rates in the 2020s. Sectors like technology, healthcare, food, energy, and metals are likely to be favored for security, along with large domestic-oriented economies like the US and India. The shift towards a more fragmented world is also impacting government expenditure, supply chains, and reshaping global markets. These changes are expected to have implications for investors, leading to higher inflation, interest rates, and a focus on sectors key for a greener planet. Additionally, the new world order is likely to benefit some countries while posing challenges for others.