October 31, 2023, 3:24 pm EDT
Defense for Wars
When there are more wars coming, the defense industry should be the answer to advance.
Indeed, Russia-Ukraine is far from over after 1-2 years of progress. The Israel-Hamas war is coming up after the 10/07 Hamas attack. It is expected that more countries are likely to be involved in this battle including Iran, Lebanon, Palestain, and many Middle East neighboring countries. Furthermore, when Russia, China, and the US engage the fight, the scope of the wars will be escalate to the world levels.
In the meantime, the stock market already reflects this reality that defense systems are likely to be strengthened for many countries. Thus, the US defense industry is ready to take off the ground.
Leidos Holdings Inc (LDOS) is up +8% is an example to show the upside breakout. There are many other peers are also ready to rise: LMT, GD, RTX, NOC, LHX, etc
It makes logical sense to add defense stocks into watchlist or portfolio to prepare for it.