Stock rally ‘too good to be true’, warn CIOs

Investment chiefs say the rally in Australia’s sharemarket seems too good to be true, and that valuations are starting to look expensive given the very uncertain economic backdrop.

The warning comes as brokers have turned more positive, raising their year-end target for the benchmark S&P/ASX 200 Index to at least 8000, despite markets pushing out interest rate cut expectations to early next year.