Time to Bail Out of Aerospace ETFs By Don Dion About this article: Despite a strong fourth-quarter earnings report from Northrop Grumman this morning, I recommend selling the PowerShares Aerospace & Defense Portfolio and the iShares Dow Jones U.S. Aerospace and Defense Index Fund. These funds will continue to be volatile, and with the market in the midst of a slide, that volatility will likely be to the downside. Earlier this week, I commented that big names like Boeing, United Technologies and Lockheed Martin could face serious sanctions from China due to their involvement in an arms deal with Taiwan, exposing them to potentially massive losses. While this news was enough to dissuade me from playing ITA and PPA in the near future, as this week unfolds, more negative news is coming to light regarding the future of these funds' top instruments, and it looks as though both funds could be in for some unsettling turbulence. The budget proposal... To read the rest of this article and sign up for a FREE trial click here...

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