How do you react to high valuations across the market

How do you react to high valuations across the market? Rhett Kessler, Fund Manager at Pengana Australian Equities, explains how he has reacted to higher valuation in equities on the ASX. Kessler says investors have started to capitulate due to lower interest rates and as a result there are large sums of money making its way into the market. This weight of money is creating all kinds of pressures in the market... At the end of the day, if index hugging fund managers are receiving more dollops of cash then they have no option, because they have to be fully invested, than to just keep buying stocks. In this short video Kessler explains how he is shaping his portfolio to deal with this scenario.