The Australian share market has opened up strongly this morning and is looking to charge past the 6,000 point level this week, or even today. While it has risen 28 points so far, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is sitting less than 0.1% shy of the target at 5,996.4 points.
While it has already come agonisingly close a number of times this year, unfavourable interest rate decisions from the Reserve Bank of Australia have seen it fall just short. It recorded a high of 5,996.9 on 3 March which was its highest level since early 2008, at which time the market was tumbling from a high of roughly 6,850 as the Global Financial Crisis rocked equity markets around the world.
The market's charge over the last three years or so has been driven by Australia's high-yielding stocks and investors' insatiable hunger for their dividends. The same can largely be said about today with Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB) and Telstra Corporation Ltd (ASX: TLS) leading the charge to be trading 0.5%, 0.3% and 0.5% higher, respectively.
Notably, Australia's oil and gas stocks are also providing plenty of energy. Companies such as Woodside Petroleum Limited (ASX: WPL) and Santos Ltd (ASX: STO) have lifted 1.2% and 2.4% after oil prices rose for a fourth consecutive week last week.
Has the market become too expensive?
With the Australian share market trading near its highest point in seven years, some investors have become concerned that the market has run too hard and that equities are now too expensive. To an extent, they couldn't be more correct with many of the nation's blue-chip stocks – particularly the Big Four banks and Telstra – having become overpriced (relative to their growth potential).
While that might be the case, investors need to be aware that there are a number of other companies that are still trading at attractive prices – especially for investors who are focused on the long term.
While I highlighted three of those companies in a separate article this morning, which can be found here, The Motley Fool's top analyst, Scott Phillips, has also just named his hands-down best stock to buy in 2015. Better yet, he's giving his expert analysis away for free! Simply click the link below to gain your FREE copy of his brand-new report.
