Equity Engineer – November 2015 | Central banks setting the path for low growth and yield trade

Global market outlook: The political environment and central banks are not allowing market forces to kill off the weaker industries and grow the stronger industries. The continued low interest rate and deflated currency outlook will help keep weak industries going for longer and in turn, the inefficient allocation of resources will keep economic growth low for longer. We continue to see the low global growth outlook and falling domestic currency to support our equity market recovery on the chase for yield. Preferred sector/stock picks: Commercial Services: BXB, IPH and VED; Transport Infrastructure: MQA, QUB, SYD and TCL; Consumer Services: AGI, ALL, MTR, RFG and SGH; Diversified Media: APN, APO, FXJ and VRL; Staple: BGA, BKL, GNC, WES and WOW; Health Care: ANN, BNO, CSL, GXL, MYX, RHC and RMD; Banks: ANZ, BEN, BOQ, CBA, NAB and WBC; Diversified Financials: BTT, HGG, and MQG; Information Technology: ALU, CAR, HSN, IFM and IPP; Telecommunication Services: MTU and TLS. (VIEW LINK)