Strategy outlook: We maintain a bullish long term view on the Australian equity market while short term volatility is expected through the US interest rate cycle and China growth slowdown. We remain positive on the yield and currency trade, while domestic economic deterioration will expose Australia to global volatility even more. We continue to expect interest rates and currency to head down with growth outlook, while unemployment and the property bubble remain key risks. Global investors will continue to take money out of Australia due to currency risk and provide a very good opportunity for local investors to accumulate on the long term view. Current model portfolio: Materials – large (BHP); Transport – large (SYD, TCL); Consumer Services – mid (ALL), small (AAD, AGI, MTR, RFG, SGH); Media – mid (FXJ), small (VRL), micro (ICQ); Health Care – large (CSL, RHC), mid (ANN, COH, RMD), small (GXL, MYX); Banks – large (ANZ, NAB, WBC), mid (BOQ); Diversified Financials – large (MQG), mid (HGG), small (FXL, IMF); Telecommunications – large (TLS), small (SPK), micro (BGL). (VIEW LINK)