The war is still going on, and despite the horrors that are being committed there, we still remain investors, and we have to see some things from that perspective.
**OIL AT $120
The price of brent oil has surged above $119.99 per barrel after the escalation of the war in the Middle East
This is scaring the markets, with futures of the major indices falling significantly
At this time, the price is at $93 with a 30% range for the day.
Specifically, the S&P 500 was down -1.6% in the pre-market but now it is +0.83%
On the other hand, shares of oil companies such as Exxon Mobil are skyrocketing
Wars create panic among investors, and in the short term we see big swings. It is normal.
MEGA BOOST IN DEFENSE: Trump announces production quadrupling!
After a meeting at the White House, the leading defense companies agreed to quadruple production amid the war with Iran and massive demand
The increase actually began about 3 months ago, with order backlogs skyrocketing
1️⃣ Lockheed Martin: The king of the F-35. Showing huge momentum
2️⃣ RTX Corporation: Dominant in Tomahawk, SM-6, AMRAAM and Standard Missile systems. It already has deals to quadruple production in several systems
3️⃣ Northrop Grumman: Strong in stealth technology, missile defense and space
4️⃣ L3Harris Technologies: Communications, electronic warfare, ISR and missile solutions
5️⃣ BAE Systems: Submarines, electronics and a European tailwind. A rising force with US defense deals
6️⃣ Boeing: Defense and Space operations including missiles and bombers
7️⃣ Honeywell: Aerospace components and defense exposure around 40–45%. Not a pure defense company
The US reserves in weapons and ammunition after using , selling, and giving weapons for the last 4 years to Ukraine and Israel are at historic lows. Combine this with the increase in defense spending in Europe and its re armament the next 4-5 years will be the best of times for those companies.
