Is now a good time to buy equities?

Many experts say last year was positive for the vast majority of indexes but somewhat tricky for active management. In a highly unstable context, managers have had to adapt their portfolios to shifting market environments. This year started on a similar note, with movements in the stock markets that have surprised experts like Ismael García Puente, investment manager and fund selector at MGP. On a talk show on Negocios TV, he acknowledges that "the market is behaving rationally” for the first time. "It's pricing in a rate hike and punishing companies that benefited a lot from the pandemic,” he adds.

In this context, the forecasts suggest that "this will be a normal year for equities" in the United States, with anticipated stock market returns of around 8-10%. Despite estimates pointing to an ordinary year for this asset type, he believes we could see fourth consecutive quarter with anticipated growth and profits of over 20%, "giving us positive cash flow for the year."

What can we expect from the Spanish stock exchange? In the expert’s view, equities are a good investment when three conditions are met: "We need upward economic growth, where macro risk is down and the emerging countries are also doing well." Still, he acknowledges that there are those who want to take more risks and buy the recent dips to boost their gains, although "this is within few people’s reach." But the most important thing, in Ismael García Puente’s opinion, is to add a fresh perspective to our portfolio: "Choose a manager who truly understands the companies and selects the ones that can perform well in this environment."