We maintain a bullish long term view on the Australian equity market to reach 6500 in 2016. Falling growth outlook and RBA move have made equities as the preferred risk/return option for investors wanting more than 3% return in an environment where disposable income and standard of living is falling while unemployment is rising. The expected short term profit taking in May has pulled the market down to yield weighted fair value market level of 5600. The disparity between the fiscal and monetary policy settings will not help growth recovery with rising unemployment outlook. We expect the yield thematic to continue with growth outlook remaining very soft and RBA remaining on an easing bias. Market worried about switching between yield and growth are beginning to realise the potential GARY provides to stock selection. GARY Industrial picks are: small cap (FXL, CWP, GDI and TIX), micro cap (AVJ and HFA). GARY Resource and related picks are: none. (VIEW LINK)