Political uncertainty hasn't stopped the local sharemarket, which rose again today to hit a new record.

But there is now a risk that local shares are overvalued, says PIE Funds head of research Mark Devcich.

The NZX-50 is now valued at price to earnings multiple of 22 compared to US markets where the average is about 18 and Australia where it is 16 times, he says.

The kiwi market was looking "very expensive," Devcich says on the latest of Market Watch.


The NZX-50 index has risen for each of the past nine months, the second longest winning streak in the Bull run which began in 2009.

Overseas investors have been attracted to New Zealand's relatively high yielding companies, but as interest rates around the world start to rise we could see pressure going on the New Zealand market.

Meanwhile, the coalition talks haven't rattled investors new Government policies around immigration and housing could cause concern and put downward pressure on some stocks, Devcich said.