The Australian share market peaked at its highest level in six years on Monday morning, but failed to break the symbolic 6000 threshold.

Within 15 minutes of the markets opening, the ASX 200 had reached 5,995, before plummeting almost 40 points.

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At 11:30 am it was hovering around 5,955.

Banks and mining companies – which make up a huge chunk of the ASX 200 – were behind the push upwards.

As IFM Investors’ Neil Carter said in a recent interview with The New Daily, the recent strong performance of the Australian share market is being driven by investor sentiment rather than fundamentals.

Most importantly, Mr Carter said historically low bond yields and cash rates mean investors have nowhere else to go but equities, which pushes up prices, lifting price to earnings ratios to pre-GFC levels.