Temasek's Chief Investment Officer says: AI and inflation are the biggest market risks for 2027.

Temasek International's chief investment officer has pointed out that an AI rally pullback, along with inflation driving up bond yields and ending the stock market rally, are the primary risks facing global markets next year. Rohit Sipahimalani, chief investment officer of Temasek International, said: "Unwinding of AI trade positioning is the biggest risk. We don't think it will happen immediately, but the market is very likely to encounter turbulence in 2027." Speaking on Wednesday at the 2026 Milken Asia Summit in Singapore, Sipahimalani said another core issue is "inflation-related concerns." He said: "Inflation risk combined with changes in the interest rate environment means the stock market may face a tipping point at some point. AI and inflation are the two key risks in my view for 2027."