Seeking Alpha·2026-01-05 20:31Core Viewpoint - The article discusses the investment potential in the iShares U.S. Aerospace & Defense ETF (ITA), highlighting a favorable outlook based on government spending trends in the defense sector [1]. Group 1: Investment Thesis - The author previously indicated a "buy signal" for the aerospace and defense sector, which has proven to be accurate in the short term [1]. - The investment strategy focuses on identifying narrative trends before they become mainstream, emphasizing the importance of concentrated and high-conviction positions [1]. Group 2: Market Insights - The author manages risk through disciplined position sizing, suggesting that this is often more critical than the selection of individual securities [1]. - The article references the importance of holding idiosyncratic positions for successful investing, quoting Howard Marks and David Swensen [1].