Small Cap Industrials In Focus

Look beyond the global worries and the day-to-day volatility and you see that something's different in the Australian share market this year. That something might have consequences for how investors are going to perceive "risk" and "opportunities" moving forward. While broader indices are down for the year, small cap Industrials are not and they have noticeably outperformed as shown by the Small Industrials index being up circa 3% year-to-date. Looking into the finer details, this seems to make a lot of sense with large cap stocks in Australia much more growth constrained and more exposed to what troubles investors' minds. So is this a one-off or are we witnessing a shift in investors' focus, triggering a re-rating for those stocks that can grow sustainably in a context of slowing global growth? (VIEW LINK)