Pennywise Investment, an exchange traded fund (ETF) specialist developed by economist David Bassanese, is keeping an overweight position in Australian equities and local listed property, despite some experts saying the market is overvalued.

Bassanese, who publishes his economic and market research; ETF AssetMAX Report, said there isn't much need to change the allocation of the Investors' Model Portfolio as the local equities and listed property market show the strongest relative performance.

The firm's asset allocation report is published and reviewed monthly.

The Pennywise Investor's Model Portfolio, which uses ETFs to invest, has an overweight holding in the ASX 200, ASX 200 REITs and the Emerging Markets. The portfolio holds a benchmark weighting to MSCI EAFE and an underweight position in cash and the S&P 500.

The Model Portfolio, which takes a medium-term view, has returned almost 5 per cent in September and over 12 per cent since inception in July.

Bassanese said it is probably better to stay invested than try and predict if a market correction is going to occur.

"Although I think there's likely to be a correction I think the bigger trend is things are going to be up and secondly it's very hard to figure out when this correction is likely to occur because we've been talking about the possibility of this for several months now," he said.

He said, from a medium-term outlook, the emerging markets investment opportunities compared those in the MSCI EAFE, which represents Europe, Australasia and Far East, are similar.

"The EAFE is not significantly better value than emerging markets. From a longer term point of view, the emerging markets growth outlook is stronger and relative performance has been stronger to date," he said.

And Bassanese reckons the local listed property market should continue to edge higher, even though it is approaching fair value.