Small cap stocks have had a great year and in some cases are up 30 - 50 per cent. This growth has been driven by PE expansion, which is typical for the early stage of a bull market. For the share market to go higher, we need to see earnings growth, which at the moment remains patchy. There were a number of earnings downgrades during the recent AGM season - a sign that there may have been a softening of economic activity in the second half of CY13. February earnings season is a key indicator for us and we will be keeping a very close eye on the outlook statements delivered in the company presentations. Equity Analyst Matt Haupt, talks through our view on the outlook for the Australian market. &feature=youtu.be