Slowing global growth, excessive central bank support and currency wars have driven industrial stocks to historical high multiples despite lagging earnings growth and low yields. We continue to expect the central banks to remain on an easing bias while the US Fed move on rates will be slower than expected. The RBA will be forced to cut rates to support a slowing economy and weaker than expected inflation. The low volatility and crowded nature of investor holdings suggest that we are likely to see high volatility as the reporting season check up on growth outlook runs through the sector over the next few weeks... (VIEW LINK)