High valuations in itself are seldom a powerful enough reason for share markets to correct

High valuations in itself are seldom a powerful enough reason for share markets to correct. But combine high valuations with a pending change in the outlook for US Treasury yields and it can be no surprise the going is getting tougher for local equities. Note reputed funds managers like Magellan and Airlie have been raising cash levels for a while now. FNArena's own investigation into what exactly is being priced in for the local share market reveals underlying valuations are actually higher than what they seem, as market averages are heavily skewed by outliers and extreme polarisation that sees resources stocks looking cheap, but for very good reason. Consensus forecasts are high and supported by LNG companies and Industrials. My Weekly Insights: (VIEW LINK)