Temasek warns of two major market risks in 2027: AI trading reversal and inflation pushing up interest rates BlockBeats News: On October 7th, Rohit Sipahimalani, Chief Investment Officer of Singapore's Temasek, stated that the two main risks facing the global market as we enter 2027 are a reversal in AI trading and sustained inflation driving further increases in interest rates and bond yields, ultimately triggering a repricing of the stock market. He stated that the biggest risk is the reversal of AI trading, but currently does not believe that this risk is imminent. As of the end of March 2026, Temasek's net investment portfolio is valued at SGD 518 billion (approximately USD 405 billion) and plans to increase the proportion of AI related investments from around 6% currently to a maximum of 15% by 2031. However, Sipahimalani stated that Temasek is increasing the liquidity of its AI investments and plans to increase the proportion of open market assets in its AI exposure from approximately 50% to 70% to 75%, in order to be more flexible in adjusting its position during rapid industry changes. He also warned that if inflation persists and drives up interest rates and long-term bond yields, it could create dual pressure on overvalued stocks and capital intensive AI projects. Temasek has not changed its long-term bullish stance on AI, but is reducing potential market repricing risks by increasing public market assets and liquidity. [Original link]