Investec's King: Who is afraid of the bogeyman?

Investors are not yet ready to deploy stockpiled cash into equity markets despite the recent rally, said Investec's Max King, as they are "afraid of the bogeyman" or unexpected shock.

The multi-asset fund manager said although the S&P 500 has hit post-financial crisis highs, investor appetitie remains subdued despite the potential for a long-term bull market in equities. "Everyone is scared of the bogeyman in the longer term, which means firm markets have not led to significant fund inflows or been accompanied by high volumes or volatility. "Concerns about the eurozone, the global economy, oil prices and political risk have not gone away, encouraging investors to remain cautious." He added fixed income buying has reached its highest level since 2010, but value i...