Although global markets rallied on Friday as a central bank posse rode to the rescue, leading fund managers have warned the correction in shares isn't over.

As on Friday, super's gains for this financial year have virtually been wiped out as a plunge in the sharemarket overwhelmed the dollar's earlier fall and a rally in bonds.

For 2014 so far, the average super fund is still up 2.6 per cent, according to Jeff Bresnahan, executive chairman of SuperRatings.

The Dow rallied 263 points on Friday but is down 5.2 per cent from the September peak. The Australian market is down 5.6 per cent, leaving it flat for the year, and unlike Wall Street it has never fully recovered from the global financial crisis.

Fortunately your super has recovered because blue-chip companies have been pumping out higher dividends and employers have also been contributing. The average balance is 25 per cent higher than its pre-crisis peak.

The price range for the float of Medicare Private will be revealed on Monday but a shaky market could mean investors get stock at the lower end, cutting the cash-strapped government's proceeds.

An ominous sign is that leading fund managers aren't yet topping up stock at the cheaper prices.

"This is the start of a correction. Volatility is the highest in two years. We're holding 50 per cent cash and have been progressively selling," says Martin Hickson, senior equities analyst at Wilson Asset Management.

"We might get a short term bounce but in the coming months there's potential downside of another 5 to 10 per cent."

But low interest rates will limit future corrections to about 10 per cent when the norm used to be 15 to 20 per cent, according to Don Williams, chief investment officer, Platypus Asset Management.

"It's fair to say markets have moved into a new phase. Volatility tends to foster and we're likely to have more next year but it would change the upward trend," he says.

The fact that the dollar has been unusually steadfast around US88¢ will help the market.

"For the first time in a while the currency is showing signs of stability. The US 10-year bond yield is collapsing so the US dollar won't strengthen as much as what was thought a few weeks ago," CommSec economist Savanth Sebastian says.

While "there will be a lot more volatility and maybe a bit of a leg down our analysts see it as a buying opportunity," he says.

Central bank actions on Friday reassured the markets.

The European Central Bank will print more euros to prevent a recession and US Federal Reserve officials say they may extend its emergency money printing known as quantitative easing and that falling prices are a threat. This puts any thought of rate rises back to late next year.

In Australia, the Reserve Bank won't lift rates before the US.