Krungthai Asset Management (KTAM) recommends investors diversify risks and balance their portfolios amid elevated interest rates and the US presidential election in November.
Chavinda Hanratanakool, chief executive of KTAM, said high-risk assets are expected to provide a neutral return in the second half, while safe-haven assets improve from recent years, even if volatility persists.
"Creating a balanced and diversified investment portfolio is essential for the second half of this year," she said.
The global bond market is likely to fluctuate because of expected interest rate cuts in many countries, said Ms Chavinda.
Generally foreign bonds become more attractive during a period of interest rate cuts, she said.
"Investors can choose to invest in bond funds for the medium to long term, especially those who want to invest in debt instruments for one year or more," said Ms Chavinda.
KTAM expects sentiment for the Thai stock market to improve in the second half as fiscal budget disbursement has started, allowing more capital to flow in the economy.
The US stock market should be more interesting in the latter half of the year as share prices have returned to an appropriate level, she said.
In addition, the US Federal Reserve is likely to cut interest rates later this year as inflation slows, said Ms Chavinda.
Government stimulus should help to accelerate the economy as the tourism sector continues to recover, she said.
As a result, the economy is projected to pick up in the second half, although the policy interest rate will remain unchanged at 2.50%, said Ms Chavinda.
"While several factors remain uncertain, such as interest rates and earnings of listed companies, investment diversification is key to creating opportunities for the portfolio to grow," she said.
Holding energy stocks will help protect from fluctuations caused by geographic risks, while gold continues to benefit from geopolitical risks and increased buying by central banks around the world, said Ms Chavinda.