• Singular Asset Management flagged “bipolar” markets, with an AI-driven earnings boom supporting US and emerging Asia equities while a prolonged Gulf energy-supply disruption raises the risk of higher inflation, weaker growth, and tighter monetary policy.
• It kept an overweight in Technology, Emerging Asia, and Infrastructure, citing strong profit growth that has limited valuation pressure despite new equity highs.
• The strategy shifted fixed income toward short-dated government bonds and Euribor-linked floating-rate instruments, trimming investment-grade credit as spreads sit near cycle lows and appear to underprice energy-shock risk.
• It reduced the overweight to European equities versus the US, arguing Europe is more exposed to an energy squeeze; it also kept most USD exposure unhedged to preserve diversification given hedging costs.
• The note said markets are pricing about 50-75 bps of ECB hikes from June, with the Federal Reserve seen holding rates; it warned that supply constraints could persist, with inventories not returning to pre-war levels until 2027 even in a benign scenario.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Singular Asset Management SGIIC SA published the original content used to generate this news brief on May 18, 2026, and is solely responsible for the information contained therein.