The Australian share market is at an all time high, but is it sustainable?
Read Shane Oliver's view here
Key points raised are:
- Bonds and shares often diverge, we saw this a year ago with shares rallying but bonds yields staying low
- Shares have been boosted by strong earnings news, improved valuations, investor awareness of last years' experience of a post lockdown bounce back, vaccines providing optimism and pressure for more stimulus and merger and acquisition activity.
- While shares remain vulnerable to a correction, the trend is likely to remain up.