What I’m watching in markets in July 2026: Beansprout Pro Monthly Brew

My top-line take for July

• Stay invested, but be selective. I'm staying invested in Singapore but more selective than last month.
• The STI has hit a fresh all-time high near 5,469, on a bank rally that took DBS above S$70 and UOB above S$44 on 9 July — not a reason to chase or exit, but a reason to add on pullbacks rather than into strength.
• I'd play AI opportunistically through bank technology investment and data-centre REITs, and stay selective on S-REITs (0.86x P/NAV, 5.5–6.5% yield) given refinancing risk until the Fed turns clearly dovish.
• Banks remain my preferred way to gain Singapore equity exposure. They offer strong balance sheets, dividend yields of around 4% to 5%, and the upcoming 2Q26 results could be the next test of whether the market gives them more credit.
• The longer-term case still rests on four structural themes — energy security, AI and data centres, government spending, and Singapore's wealth-hub role — though the re-escalated US-Iran conflict adds fresh caution, so my bottom line is patience, quality, and buying dips over chasing momentum.