The new financial year greets us with the same challenges and uncertainties of the last.

The recent movement in the sharemarket has confounded the skeptics and perennial bears, but that is not to say there will not be more short-term volatility.

The correct action is to acknowledge the market is impossible to predict with any accuracy, and therefore try and remove the temptation. We often repeat the mantra the stock market is a market of stocks (or companies), and the investors job is to select from the companies which are most likely to deliver long-term returns. It is the job of the speculator to select which companies share price will be up or down in the short term.

The article at the back of this newsletter succinctly makes this point.

We’ve fielded many enquiries about the so-called “cliff” in September, and, bearing in mind our advice to avoid predicting the market, our response is that severe market falls almost never occur when they’re expected as the risk is factored in and/or a pre-emptive response can be implemented.

During the month Thomas Madden spoke with Ausbiz twice. He discusses the start of reporting season, including GUD, TPW and CCP and discussed BHP, DOW and local tech stocks.

https://www.ausbiz.com.au/media/reporting-season-begins-gud-tpw-and-ccp-in-focus?videoId=3033

https://www.ausbiz.com.au/media/markets-wrap-bhp-dow-local-tech-in-focus?videoId=2865

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