Dion Hershan isn’t buying all the “hype” of a bull market driven by a narrow group of factors.
The executive chair and head of Australian equities at Yarra Capital Management warns against complacency after a 70 per cent rise in Australian shares in the past 18 months as iron ore prices dive from record highs and banks are priced for perfection in terms of their bad debt provisions.
Driven by unprecedented fiscal and monetary policy stimulus globally in response to the coronavirus pandemic, the sharemarket has set records, including a 24 per cent rise in the S&P/ASX 200 index last financial year and consecutive gains for the past 11 months.
It has pulled many along for the ride, but valuations shouldn’t be ignored.
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