Vasu Menon, OCBC investment strategy MD, said the long-term outlook for
AI-driven gains remain constructive, but the sharp US and Asian tech sell-off
shows volatility is inevitable after an extraordinary rally. May’s outsized tech
gains make the current healthy correction reasonable; near-term caution is
warranted given the inflation trajectory, rising US Treasury yields and
uncertainty over Fed policy under the new chair. Planned high-valuation IPOs
from SpaceX and ANTHROPIC add short-term concern as markets question AI/tech
premia and whether mega-IPOs will siphon liquidity from other tech sectors. Over
the longer term, these listings would reinforce AI as a core investment theme.
