In addition to political rhetoric, potential catalysts for aerospace ETFs include include, renewed airline pricing power evidenced by higher ticket prices, and more fees paid per traveler, increased airline profitability, new aircraft program launches and continued demand for aircraft models and technology.

“Couple the shrinking budget for massive infrastructure with a Congress that has struggled trying to pass major legislation of any kind and you might see why the engines of industry might be better off shifting into low gear over the next few months or risk stalling in hopes of badly needed public works contracts,” said Direxion. “While military spending might seem to be on pace for further growth, the federal budget is a bipartisan dance, and Democrats can also play the deficit game.”

Potential catalysts for aerospace ETFs include include, renewed airline pricing power evidenced by higher ticket prices, and more fees paid per traveler, increased airline profitability, new aircraft program launches and continued demand for aircraft models and technology.

For more information on the markets, visit our S&P 500 category.