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fiscal_cliff-300x224Forget about the fiscal cliff and start thinking about the industrial cliff.

Do you wonder why the Federal Reserve would spit in the wind of inflation with its QE Infinity program? The answer is because the macro economy has already fallen over the industrial cliff. You just don’t know it yet.

The Federal Reserve does and in response announced an unprecedented and unlimited program to buy mortgage and other securities in an attempt to soften the landing.

Investors have cheered appearing oblivious to the coming train wreck, but make no mistake a train wreck is coming. The economy hit a brick wall this summer. As a result third quarter earnings especially those industrial companies that sell goods overseas are likely to disappoint.

We are already seeing glimpses of such with the poor results from Federal Express (NYSE: FDX) and an earnings warning from Caterpillar (CAT). On Thursday we learned that durable goods orders fell by 13% in August.

That sort of steep drop does not come without consequences and each day that comes along we see more and more evidence of the damage being to individual companies.

The latest comes from specialty chemical maker HB Fuller (NYSE: FUL). That stock is down 5% on Thursday after reporting earnings results for the quarter ending August 31, 2012. The company met estimates for earnings, but revenues missed. More importantly the company reduced guidance for the current fiscal year.

Get used to those poor reports when earnings season begins in earnest in Mid-October.

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On the following pages are 5 stocks ready to fall over the industrial cliff:

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