With the August reporting season complete we finally get to review the report card on the health of corporate profits in Australia. It is a good time to pause and consider the outlook for the market over the next 12 months. Expectations were subdued as reporting season opened, a viewpoint that was swiftly validated. There was little for the market to get excited about unless you had exposure to the mid, small and micro-cap sectors. There was a silver lining as the smaller companies index significantly outperformed the larger cap sector by nearly 14% for the financial year 2016. Read more on my outlook for the Australian market below.