^{Tan Su Shan is the CEO and director of DBS Group. | Bloomberg | Bloomberg | Getty Images}

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DBS Group, Southeast Asia’s largest bank by assets, is sending out a stark message to global investors: hold on tight. Tan Su Shan, who took over the helm of DBS in March 2025, warns that the current market environment is far from smooth sailing. Driven by concentrated bets in high-flying U.S. tech stocks, soaring valuations and mounting macro-risks mean that volatility isn’t just possible – it’s probable.

Why the Warning?

Tan pointed to multiple indicators suggesting the market could be in for a shake-up:

• The so-called “Magnificent Seven” (Amazon, Alphabet, Meta Platforms, Apple, Microsoft, Nvidia and Tesla) together command trillions of dollars in market value — meaning their performance now affects much of the global market.
• She noted how you’ve had companies like Advanced Micro Devices and Palantir Technologies posting strong earnings yet seeing share price drops — a sign that sentiment may be decoupling from fundamentals.
• Key macro risks are looming: elevated U.S. earnings multiples, potential rate hikes or cuts, swings in foreign-exchange markets and a fragile geopolitical backdrop.

Tan’s message: “We’ve seen a lot of volatility in the markets. It could be equities, it could be rates, it could be foreign exchange… I expect that volatility to continue.”

How Big Could the Correction Be?

Industry conferences held recently have suggested a pullback of 10 % to 20 % over the next 12-24 months as a base-case scenario. Tan echoed this, saying that such a correction — while uncomfortable — might actually be healthy for long-term market stability.

In the context of markets, a 10-20 % drop may sound manageable, but given the size of assets tied to high-growth tech stocks, the ripple effects could be much broader than usual.

What Should Investors Do?

Rather than panic, Tan offered a clear prescription: diversify. Specifically:

• Avoid over-concentration in one market (such as U.S. equities) or one asset class (e.g., AI-driven growth stocks).
• Extend diversification to portfolio, supply chain, and demand distribution: think global footprints, not just domestic exposure.
• Consider alternatives: Tangible assets, regional exposures, non-U.S. markets. That’s where Singapore comes in.

Singapore’s Role as Alternative Hub

Tan used her platform to highlight her home base, Singapore, as a compelling diversification option. She described it as a transparent, stable financial system with the rule of law — in other words, a “diversifier market” for those looking to reduce dependence on U.S. valuations.

With DBS’s strong regional footprint across Asia, Tan believes that as U.S. valuations become more stretched, investor flows may increasingly gravitate toward Asia — especially markets with stable regulatory regimes and high-growth potential.

Final Thoughts

For investors, the takeaway is straightforward: the era of easy gains may be drawing to a close. Whether the trigger is a hysteria-driven tech correction, a surprise interest-rate move, FX turbulence or a geopolitical shock, the warning from DBS’s CEO is clear: buckle up.

At the same time, Tan isn’t resigning to doom and gloom. She sees opportunity in the shake-up — for investors who remain agile, diversified and mindful of concentration risk. In a market where one handful of stocks dominates, the smartest move might just be to spread your nets wider and ensure they’re anchored in stable ground.