Temasek CIO flags AI trade unwind as top market risk, not imminent
Temasek's chief investment officer Rohit Sipahimalani said at the Milken Institute Asia Summit that a reversal of the AI trade is the biggest risk facing markets, though he doesn't see it as imminent and flagged possible 'bumps' in 2027. He noted that while the S&P 500 sits near record highs on AI-driven earnings momentum, roughly half of Russell 3000 stocks are at least 20% below their June peaks. Temasek remains bullish on AI long-term and is shifting more of its AI exposure toward publicly traded assets, aiming for 70-75% from about 50% currently.