Core Viewpoint - In August, during the busiest earnings season in Australia, investors sold off stocks of companies that underperformed expectations, indicating a potential overvaluation in the Australian stock market [1] Group 1: Company Performance - Woolworths, Domino's, and WiseTech experienced double-digit declines, with Woolworths facing its worst day since 1997 [1] - The Australian S&P/ASX200 index is nearing historical highs, with price-to-earnings ratios at their highest level in four years [1] Group 2: Market Analysis - Companies are under pressure to deliver earnings that justify their high valuations and to promise future growth [1] - IG Australia market analyst Tony Sicamore noted the risk of overvaluation entering the earnings season, stating that if expectations are not met, the market reaction could be severe [1]