A smart strategy for a fully valued stockmarket

These are confusing, unprecedented times for investors. The key direction-setter for interest rates, the US Federal Treasury, remains split on the timing of its first hike in many years, Chinese data in recent days has disappointed again and Europe continues to have negative interest rates. Australian labour force data has been better than expected — unemployment actually dropped to 6.1% per cent — but then again our stockmarket is not cheap. Banks and resource stocks continue to swap leadership in our flat, excessively concentrated sharemarket. This situation compares with the wealth of diversification and superior growth opportunities to be found in offshore equity markets. What’s more, it is a reminder to SMSF investors to consider increasing their allocations to global equities, but today let’s focus on the ASX. Overall, portfolios should be fairly well invested to benefit from the market rally we expect, but how to get there is a delicate matter given the range of possible scenarios investors need to weigh up and consider. Four things an investor should consider: (VIEW LINK)