(Photo: 123RF)
Investors are advised to balance income generation with long-term growth during the third quarter as escalating geopolitical tensions, rising global interest rates and persistent inflationary pressures reshape the investment landscape, says Asia Plus Securities (ASPS).As Thailand's stock market enters a more challenging phase in the third quarter, Nalinrat Kittikumpolrat, executive vice-president of ASPS, said investors should adopt a barbell allocation strategy, combining high-dividend stocks with quality growth companies to navigate an environment where returns will be harder to generate than in the first half of the year.
According to the brokerage, three major headwinds are expected to dominate markets during the second half. The first is slowing global economic growth coupled with persistent inflation risks following renewed conflict between the US and Iran.
Elevated oil prices could keep inflation above normal levels while weighing on economic activity. The International Monetary Fund projects the global economy to expand by 3.1% this year, the weakest in five years, while the Bank of Thailand forecasts Thai economic growth of 2.3% in 2026 and 1.8% in 2027.
The second challenge is tighter global monetary policy. ASPS expects several major central banks, including the US Federal Reserve, the European Central Bank, the Bank of England and the Bank of Japan, to continue raising interest rates during the second half of the year.
