ASX richly priced, valuations elevated, warns Perpetual strategist

The sharemarket rally that has taken the ASX 200 to new highs is unlikely to continue, one of the country’s largest investors has said, describing the outlook as “challenging”.

The warning from Perpetual’s head of investment strategy, Matthew Sherwood, came as Australian shares topped 7900 points for the first time ever on Thursday as gold, iron ore and lithium miners advanced amid a rebound in resource prices. The interest-rate-sensitive banking, property and retail sectors also climbed.