In a recent note the research team at Morgans outlined why they believe a cautious approach is warranted in the current reporting period. The broker highlighted four factors that suggest risks are likely skewed to the downside. These are 1) Factset consensus forecasts that show robust industrial earnings have been eroding 2) There is a dispersion of consensus earnings and dividend expectations that is wider than usual - reflecting lower corporate confidence; 3) market expectations for margin expansion look optimistic versus recent performance and 4) expanding payout ratios are potentially setting investors up for a painful reality check if companies under-deliver on dividends. With expectations subdued Livewire reached out to a selection of fund managers to see where they do and don't want to be invested in the current environment. Responses come from Katana Asset Management, Avoca Investment Management and The Montgomery Fund along with a great chart from Morgans.