We look at both markets and find that the US market is moderately overvalued and the Australian market is only slightly overvalued. Both can continue at this level for some time:
The US market is different than ours. A much higher proportion of total return is from the level of stocks rising with earnings, and a much lower proportion is its response to interest rates because dividend yields are much lower in the US.
I discussed this in my latest presentation to the Morgans network:
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