Our High-Conviction Views
 Early Cycle has turned up, Mid bottoming, Late will bottom in early 2010
 Stimulus, environmental spend, and improved confidence (ISM) now a tailwind
 Cycle risk sharply lower but… rally has brought valuations back to mid cycle levels
 Estimate revisions now rising – price & margins holding up better than expected
 Biggest risks: 2010 price pressure, China over-capacity, lack of pent-up demand
 We see muted and flatter recovery; low growth world with deflation risk
 Muted recovery leads us to favor M&A stories, quality management
 Overweight names: DHR, CBE, TYC, WSO, GE, 3M, DOV, HON
 Favorite Equal-weight and Not-Rated names: ITT, ROP