What I'm watching in markets in August 2026: Beansprout Pro Monthly Brew

Beansprout Pro in Brief

• The Singapore market delivered its strongest month of 2026 in July, while our model portfolio gained 9.39%, driven mainly by its bank holdings.
• The rally has pushed bank valuations well above their historical averages, leaving less room for disappointment as earnings season begins.
• Construction and infrastructure holdings also contributed positively, supported by resilient economic activity and multi-year government spending.
• The AI position was the portfolio’s only detractor as memory chip and AI hardware stocks sold off sharply, although the longer-term infrastructure theme remains intact.
• Interest rates and geopolitics remain key risks, with the Fed and developments around the Strait of Hormuz likely to influence markets in August.
• In this update, we explain what drove July’s performance, why we are holding rather than adding, and the key signals that could shape our next move.