Global Aerospace & Defense

While we are still positive on commercial aerospace, we are looking to tactically adjust our weightings as the year progresses and add to OEM positions vs the aftermarket. With potentially more Fed 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 negative book to bill in 2024 that could present an opportunity for those names. In defense, we’re not seeing a lot of absolute upside or downside for most stocks – so that could result in another year of relative underperformance in a more bullish equity environment.