The Australian sharemarket has had a remarkably strong run since December 2023, when the S&P/ASX 200 index was around 7,000. In recent weeks the index topped 9,000 for the first time, a rise of about 16% on an annualised basis over this 21-month period.
This strong performance comes despite the economy and many companies facing difficult times. Recent earnings performance of companies has been mixed, and doesn’t seem to warrant such strong stockmarket growth. This raises the question of whether the market is due for a fall.
