Photo: 123RF
It would be good for markets to go through a small correction to avoid a bigger explosion, one fund manager says.
Despite warnings of a potential crash due to inflated AI share prices, markets around the world continue to hit records.
Murray Harris, head of KiwiSaver at Milford Asset Management, said it was a worry.
"The market is being buoyed by continuing prospects for lower interest ratesโฆ and companies that are doing well.
"There's not a lot of reason for people to be thinking 'oh this is going to end' other than the professional investors like ourselves going 'well this can't last forever'."
He said as prices pushed up, it would be useful to have occasional 10 to 15 percent falls.
Were we better off in the 80s? Listen to No Stupid Questions with Susan Edmunds
"It would be healthy to have a bit of a pullback on markets and think of it like a pressure cooker. If it keeps building and building and building it'll blow but if it lets off a little bit of steam, then we get a 10 percent or 15 percent pu
Continue Reading on RNZ
This preview shows approximately 15% of the article. Read the full story on the publisher's website to support quality journalism.