Global Aerospace & Defense

We are still positive on commercial aerospace, and we have yet to see the point where it makes sense to tactically adjust our weightings and add to OEM positions vs the aftermarket. With potentially more Fed and political related volatility ahead, this could present opportune entry points, particularly for the more volatile names in our coverage. Similarly with bizjet, if investors overreact to a declining book to bill that could present an opportunity for those names. In defense, we’re not seeing a lot of absolute upside or downside for most stocks and valuations in some cases are looking rich given the low growth outlook for theUS DoD.