2026 Outlook What experts say about investing and saving money

Tech, renewable energy remain promising; insuring against emergencies is also vital

- Sue-Ann Tan

The stock markets held steady in 2025, despite the gyrations caused by US President Donald Trump's policies and tariffs.

In fact, the markets generally climbed, with some sectors like technology seeing massive amounts of money poured into it, creating fears of an artificial intelligence (AI) bubble.

Amid the talk of a bubble, frothiness and overvaluation, it can be confusing for young investors trying to decide where they should deploy their money.

The Straits Times speaks to some observers on what to do as 2026 looks to be another uncertain year.

TECH STOCKS STILL SHOW PROMISE

Tech remains a bright spot for young investors going into 2026, as the tech rally shows no sign of slowing down, driven by AI spending.

Technology stocks will remain very much "in the game" for years to come, said PhillipCapital's senior financial services director Ellain Tan.

The AI train does not seem to be ending any time soon, with indicators of Al's usage growing more widespread.

Tech firms have benefited from the AI boom, with the sector's poster boy Nvidia reporting record-breaking revenues in its latest financial update in November.

The chip giant reported quarterly revenue of US$57 billion (S$73 billion) that month. In October, it had hit a new milestone, becoming the first company in the world to reach a market value of US$5 trillion.

But young investors should be wary of simply thinking they should buy tech stocks, as these stocks come with their own challenges.

A strategy investors can use is to focus on companies that are "adapters", or that integrate AI into their operations to enhance their efficiency and streamline processes.

"They are less exposed to the challenges some other AI companies face regarding high upfront costs versus revenue generation," said DBS Bank's head of financial planning literacy Lorna Tan.