Global economic uncertainty, rising inflationary pressures and escalating geopolitical tensions are expected to shape investment strategies in the second half of 2026, prompting investors to focus more heavily on portfolio diversification while avoiding excessive exposure to long-term bonds, according to Krungthai Asset Management (KTAM).Chavinda Hanratanakool, KTAM chief executive, said diversification remains the most important investment strategy in today's rapidly changing and highly unpredictable environment.
"Diversification is key," Ms Chavinda said, emphasising that investors should spread their portfolios across regions, investment themes and asset classes to create balance and provide a buffer against market volatility.
KTAM continues to favour equities over fixed income in asset allocation strategies, while advising investors to be cautious about long-duration bonds due to ongoing uncertainty surrounding wars, interest rate trends and inflation.
Chavinda: Persistent inflation still a challenge
According to Ms Chavinda, persistent inflation remains one of the biggest challenges for investors globally. Returns from government bonds and short-term fixed-income instruments may no longer be sufficient to outpace rising living costs or generate meaningful long-term wealth.
