October 9, 2023, 10:44 am EDT
Oil and Defense
Hamas attacked Israel with thousands of bombs and ground invasion during the weekend. Its severity is the worst in the past 50 years. In our opinion, Syrian, Iran, Russia, China are behind Hamas for the attack. Most likely, this event drives the world into World War III much closer.
Confrontations in the Middle East will definitely stir up the price of oil. Thus, Oil and Defense industries are going to rise up for the days to come as long as the war drags on.
How far these two industries can go depends on the development of the conflicts. Since Russia is already in the war for the second year and China are eagerly waiting to invade Taiwan, South China sea, we think the wars are going to spread rather than diminish.
Therefore, it makes sense to put a weight on these two areas.
- Oil: HAL, MRO, HES
- Defense: NOC,GD, LHX, HII, LMT, RTX