GARY - Growth At Reasonable Yield | Euro QE to raise market demand for GARY | We maintain our positive view that the market will recover from the recent profit...

GARY - Growth At Reasonable Yield | Euro QE to raise market demand for GARY | We maintain our positive view that the market will recover from the recent profit taking on geopolitical, currency and global growth worries as ECB takes steps to deliver substantial QE. We expect domestic consumer confidence to remain low and currency to trend below 80 cents. The falling energy prices and currency below 80 cents will allow the RBA to remain unchanged with any potential rate cut consideration pushed back post 2015 federal budget. The yield differential and currency stabilising in the high 70's will bring Australian high yielding equities back in favour of global investors. GARY Industrial picks are: large cap (NAB), mid cap (BOQ), small cap (FXL, AHE, IMF, HIL, EPW and AGI), micro cap (HFA). GARY Resource and related picks are: small cap (SFR and RCR). (VIEW LINK)