7. The Aerospace Recovery
The seventh theme has to be the amazing aerospace recovery. What I find incredible about this one is that the companies involved -- mainly Boeing (BA), Honeywell (HON) and United Technologies (UTX) -- have big defense businesses, yet these stocks didn't even blink when defense cuts were standing right in front of them. These three, plus Precision Castparts (PCP), are the obvious plays. United Tech is perhaps the one with the most upside potential, now that it has bought Goodrich.
You have to own one of these. When the risk-off crowd swarms, and when the sell-everything-because-of-Washington group grabs the mike, think aerospace.