Sharemarket pushes higher but is it overheated?

The Australian sharemarket is expected to move further into record territory today following a strong session on Wall Street on Friday with the Dow Jones index gaining 78 points to 14,093. Other factors that will affect local markets this week are the announcement that a federal election will be held on November 24 and a speech to the Economic Club of New York tonight by the chairman of the US Federal Reserve Ben Bernanke. Some investors are becoming concerned that the recent rally has caused our sharemarket to become overheated. MFS Investment chief Guy Hutchings said that he believes that the local market rally has run ahead of itself short term and may be vulnerable to any pessimistic news flow in coming months.