My Personal View on STI’s Breakout and the Shifting Balance in Global Equities

Over the past few months, I have been paying closer attention to how global equity leadership is evolving, and one development that really stood out to me is Singapore’s performance. Quietly but decisively, the STI delivered around 25 percent total return in 2025, one of its strongest results in more than 15 years. For a market that is usually associated with stability, dividends, and moderate growth, this kind of outperformance made me pause and reflect on what might be changing beneath the surface.

What makes this even more interesting is the timing. Around the same period, Goldman Sachs released its Global Equity Outlook 2025 to 2035, which essentially cautions investors that the United States may be approaching the mature end of its extraordinary bull run. Over the past decade, the S and P 500 compounded at an almost unbelievable 15 percent per year. That kind of performance is not normal, and to me, it signals that we could be moving closer to a point where returns begin to normalize. Markets do not trend in a straight line forever. Eventually, mean reversion catches up, even with the strongest markets.

Seeing both developments happen together, the STI hitting new highs and the United States entering what feels like a more mature phase, made me rethink my own positioning. I have always seen the United States as the world’s innovation engine, and I still believe that. But I am also aware that high valuations mean the margin for error becomes smaller. Meanwhile, in Asia, the combination of healthier corporate balance sheets, more reasonable valuations, improving earnings, and a recovering macro backdrop creates a different kind of opportunity. It is quieter, more fundamental, and perhaps more sustainable.

For me, the STI’s strong performance is not just a number. It feels like an early signal that Asia may be entering a period where markets here are no longer simply value plays or defensive alternatives, but genuine contributors to long term growth. Singapore in particular continues to benefit from stability, capital inflows, and companies with resilient cash flows. These qualities tend to matter even more when global sentiment becomes uncertain.

My personal conclusion is clear. I am not looking to replace my exposure to the United States, but I am becoming more intentional about diversifying. If the next five to ten years look different from the last decade, I want my portfolio to reflect that shift early rather than react to it only after the trend becomes obvious. Gradually increasing my allocation to high quality Asian equities, including Singapore, feels like a sensible and forward looking move.

I am not chasing performance. I am positioning for what could be the next phase of global equity leadership.