January 25, 2022, 3:08 pm EST
Preparation for Wars
The stock market shows its preparation for oncoming wars, either Russia- Ukraine or China-Taiwan. Energy stocks spike up again: SLB, OXY, CLR, APA, DVN, FANG. Defense stocks are also strong: LMT, RTX.
Both Russia and China keep pressing their neighboring countries in military exercises recently. US and European countries are relatively inconsistent or weak in responding. Thus, the chances of real confrontation are getting higher.
As matter of fact, the off-balance fight between giants (Russia, China) and small (Ukraine, Taiwan) illustrates the strong desire of these big ones to invade and control the small ones if the US and Europe choose to stay on the sidelines.
Of course, the international warfares are complicated, and difficult to measure their outcome once starts. But, all the recent activities seem to indicate the preparation is being developed.
Thus, the energy sector and defense industry should be considered to add to the watchlist or portfolio.