Bangkok: Krungsri Exclusive forecasts a global economic recovery in 2026 amidst volatility, recommending a reduction in holdings of US tech stocks.
According to Thai News Agency, Krungsri Exclusive anticipates a global economic recovery by 2026 despite ongoing geopolitical and structural risks. The advisory suggests a strategic shift from bonds to stocks, with a focus on diversification into mid-cap, small-cap, and cyclical stocks, alongside exploring emerging market opportunities.
Krungsri Bank Public Company Limited recently hosted the KRUGNSRI EXCLUSIVE Investment Outlook 2026: Building Resilient Portfolios in a Volatile World seminar. The event featured insights from Krungsri's economic and investment experts, who outlined economic projections and investment trends for 2026. Dr. Pimnara Hirankasit, leading the economic research at Krungsri Bank, highlighted potential economic challenges, including geopolitical conflicts and misinformation, with long-term risks tied to environmental issues.
The seminar revealed that while the US economy is buoyed by investments in AI and potential fiscal policy shifts, it poses a global risk due to protectionist trade policies. Europe remains stable, driven by the service sector, whereas Japan faces geopolitical tensions with China that threaten supply chains. China grapples with economic slowdowns and demographic challenges. Meanwhile, Thailand's growth is expected to decelerate due to structural issues despite robust tourism and digital investments.
Mr. David Chao of Invesco emphasized a quarterly portfolio review strategy, noting a stronger global economy fueled by easing geopolitical tensions and a potentially weakening US dollar. Investment themes are shifting towards emerging markets, spurred by favorable currency conditions and interest rate cuts by local banks.
Investment strategies for 2026 prioritize equities over bonds, with recommendations to reduce exposure to large-cap US tech stocks in favor of mid-cap, small-cap, and cyclical stocks. Emerging markets stand to gain from a depreciating US dollar. In the tech sector, investments in China's AI industry are suggested, focusing on commercial applications.
Mr. Wirat Wityasrithada from Krungsri Bank underscored positive stock market prospects driven by strong economic growth and AI investment, despite risks from high valuations and policy uncertainties. Krungsri advises a global equity-focused portfolio with tactical investments in non-US markets, alongside flagship funds such as the KF-CSINCOME bond fund, KFHTECH-A global tech fund, KF-GEI-A for portfolio rebalancing, and the KFGDB-A fund for flexible allocations.