ITA, iShares Defence and Aerospace

ita defence and aerospace 1ita defence and aerospace 2

Both these charts are of ITA, which is an iShare of the US Defence and Aerospace industry. On the left is the “normal” or arithmetic , and on the right the semi-log chart. Sixfold in less than nine years and almost double since Trump. Of course the military industrial complex in the US is huge and no doubt it did little harm to have a president, already favourable disposed to this sector, who is surrounded by billionaires or generals.

The iShares has Boeing, Northrop, United Technologies, General Dynamics, Raytheon and similar companies in it. In total 39 of them. The iShare looks like it has done a clean 5 wave sequence since the great recession. This is one of those things where you wonder, why did I not think of this. Well we didn’t and now it MIGHT just be too late. Apart from another 10 points or so to take this to the upper boundary on the semi-log scale, this thing should be a sell. Maybe Trump and Kim Jung-Un or whatever his name is are going to meet and immediately become soul mates. They are, after all, birds of a feather.