Trump Flogs Some US Weapons
President Trump has hooked up the United States’ arms dealers with some new overseas clients. He’s authorized drones to be sold as drones, not cruise missiles as was the past policy, which means drones will be easier to flog to foreign governments barred from cruise missiles.
There’s debate over whether Raytheon Technologies, Lockheed Martin, and BAE Systems belong in ethical investing portfolios, which are proven to lead to better returns.
These defense contractors need the green light from the government to arm militaries, which are in turn, there to help conserve life and keep the peace. Raytheon Technologies doesn’t arm untrained civilians, although, we do often see cartels and terrorists wielding our weps!
The United Kingdom, for example, would rather arm locals than put its own troops on the ground. It notoriously armed the Mujahedeen “allies” in Afghanistan, before they turned the guns on us. The government blacklisted them and the business was lost for Lockheed and its investors (and rightly so!).
The world right now is fraught with division; North Korea; Russia, China and the West; China-Taiwan; China-Hong Kong. The world’s defense budgets are rising, but also with risk. There’s a black market, and sometimes it’s politically convenient for one nation to defund and unarm another after allegations of “stealing” technologies (that were part of the original arming!).
You’re trading in an active warzone. There’s lots of volatility in the short-term with stocks like Raytheon, Lockheed Martin, and Cobham, but the industry has an infinite lifespan. If you’re following geopolitical tensions around the word, this market niche may just be for you.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
