DBS Group Holdings (D05.SI) recently released its Q1 2026 investment outlook report, maintaining that despite recent price corrections, gold's long-term bullish trend remains firmly supported. Driven by currency devaluation risks, geopolitical uncertainties, and sustained central bank purchases, the bank projects gold to reach $5,100 per ounce by the second half of 2026. The report also recommends investors explore alternative assets like private equity to seek alpha returns as traditional "Easy Alpha" opportunities diminish.

**Gold: Dips Are Buying Opportunities** The report analyzed gold's volatile performance in H2 2025—a 32.4% surge from August to October followed by a sharp 10% pullback in late October. DBS views this correction as healthy profit-taking rather than a reversal of gold's upward trajectory.

Key bullish drivers include: - The expanding U.S. national debt ($36 trillion and rising), with Trump-era fiscal policies exacerbating currency devaluation risks. - Central banks' persistent demand, having purchased over 1,000 tons annually from 2022-2024. Even at record-high prices in 2025, official sector buying is estimated at 750-900 tons. Notably, central banks' gold reserves now exceed their U.S. Treasury holdings in value.

DBS raised its gold forecasts to $4,500 (H1 2026) and $5,100 (H2 2026), with models suggesting $6,600/oz by 2030 based on nominal GDP growth assumptions.

**Alternative Assets: Private Equity's Valuation Edge** With the "Easy Alpha era" fading as legendary investors like Buffett see narrowing outperformance, the report highlights private equity's appeal. The valuation gap between private markets and public equities (e.g., S&P 500) has widened to 4.1x—the most attractive in a decade. Fed rate cuts are expected to revive IPO/M&A activity in 2026, supporting exit opportunities.

Private credit also demonstrates resilience, with senior secured loans maintaining manageable default risks despite isolated credit events.

**Strategy: Hybrid Portfolios via Evergreen Funds** To address illiquidity concerns, DBS advocates using evergreen funds—which maintain liquidity buffers—for alternative allocations. These offer early distributions and redemption flexibility while matching closed-end fund returns long-term.

The bank recommends hybrid portfolios blending public and private assets to mitigate volatility, employing techniques like unsmoothing for more accurate risk-adjusted return assessments.