Fund managers say Australia’s sharemarket is still too expensive despite investors erasing about $283 billion in market value since the peak in February on fears of a global recession.

And while the sell-off has pushed the S&P/ASX 200 Index into correction territory and spurred buying of ASX-listed shares, the gauge is trading at an average of 17 times earnings – down from 23 times earlier this year – but well above the pre-COVID-19-pandemic average of 14 times.