One of the country's largest fund managers says investors are paying too much for many of the country's top listed companies, raising the risk of a sharemarket bubble.
Tower Investments says investor confidence is rising due to low interest rates, the strong performance of the sharemarket and a number of high profile new listings.
But Tower Investment chief executive Sam Stubbs says there are signs of irrational exuberance, with people paying too much for shares.
He says the New Zealand market is starting to look overvalued in some areas and people are not taking into account the risks of the companies they are investing in.
