The geopolitical shock that reverberated through global markets following the Strait of Hormuz closure in early March has fundamentally altered the investment landscape. What began as a regional disruption has cascaded into a supply chain crisis affecting everything from petrochemicals to manufactured goods. The immediate impact on energy prices has reignited inflationary pressures globally, reversing the disinflationary trend we'd witnessed throughout 2024 and early 2025.

Here in Singapore, we're experiencing this firsthand. March data reveals headline inflation accelerating to 1.80%, with Core Inflation rising to 1.70%, a notable uptick from the benign sub-1% levels we saw just months ago. While these figures remain below historical norms, the trajectory is what concerns me most.

When inflation surpasses risk-free rates, you enter a regime of negative real returns, where the purchasing power of your capital diminishes despite nominal growth.

In this month’s issue of THE MACRO GPS, we break down the inflation shifts and moving into future growth areas with our Asset allocation Strategy and finally our performance review. What this new macro map means for your capital in 2026.

Let’s dive in.

Sincerely,