An investment wish list for the decade's next half

Investors reflecting on 2024's lessons have much to consider in a year of seminal moments.

- Tan Min Lan

US President-elect Donald Trump's decisive victory defied predictions, the S&P 500 achieved nearly 60 record highs and central banks finally began cutting rates, though a hawkish turn by the Federal Reserve suggests 2025 could see only two rate cuts instead of the four expected previously.

Elsewhere, Bitcoin stormed past US$100,000, while wars in Ukraine and the Middle East persisted.

As 2025 begins, it is a timely moment to peer further ahead and reflect on big structural forces that could go right in the longer term.

In the Trump 2.0 era, what asymmetric investment opportunities might these forces unlock? With an eye towards optimism, here is our investment wish list, not just for 2025, but also the decade's second half.

AI LEADS THE 'ROARING TWENTIES' WAY

For the US, the "Roaring Twenties" narrative could gain momentum, fueled by tax cuts, deregulation and productivity gains from broader artificial intelligence (AI) adoption.

The Roaring Twenties refer to the 1920s, a decade marked by significant cultural, social and economic change, particularly in the US and Europe. It was a time of prosperity, innovation and cultural dynamism that followed the end of World War I.

Our best-case scenario sees the tech rally broadening, supported by potentially favorable policies under the new administration.

Additionally, the US is relatively insulated from tariff risks. If gross domestic product growth holds closer to 3 per cent than our projected 2 per cent, more companies and sectors could experience earnings upside in the coming years.

Meanwhile, agentic AI's rapid advancement should bolster global growth. Agentic AI refers to AI systems that exhibit autonomous behavior and decision-making capabilities, functioning as "agents" in achieving specific goals or tasks.

Across the global AI value chain, revenues could exceed US$1.1 trillion (S$1.5 trillion) by 2027.