Australian share market 'no longer overvalued'

By Mozo ·

Australian fund managers believe the market is no longer overvalued, suggesting now could be a good time to get back into equities, new research has found.

Russell Investments' September Investment Manager Outlook noted that for the first time in nearly two years, none of the fund managers surveyed believed the local market was overvalued – a potentially good sign for investors.

"The last time managers said there was no overvaluation it proved to be a signal that the market was at fair value," commented Russell's portfolio manager Scott Bennett.

"So, investors should feel comfortable investing money back into the market at these levels, as long as they take a long-term view."

Australian investors could also improve their returns by opting to compare term deposits in search of the best interest rates. According to Russell, despite the improved local view, global concerns are still weighing heavily on Australian fund managers' outlook for international shares, with 36 per cent bearish on the asset class due to concerns about a possible US double-dip recession, ongoing concerns in Europe and also whether China can sustain its momentum.

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