Investec's King: Is now the time to buy equities?

Investec portfolio manager Max King explains why, with corporate earnings beginning to catch up to the market, the perfect time to buy equities is now, before monetary policy begins to tighten once more.

When Mario Draghi, president of the European Central Bank, vowed on 26 July the ECB was ready to do “whatever it takes to preserve the euro; and believe me, it will be enough”, equity markets jumped and the euro rallied. Sceptics soon pointed out his comments included the proviso “within our mandate”, that the tools at his disposal had already failed to work and that he had few, if any, practical options. The ECB has been consistently supportive of political initiatives, but never pre-emptive; within a week it was clear that this had not changed. ECB action, as its mandate dictates, w...