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Military Matters- Investing in Defense

The US military has a serious problem that few people — including many in the Pentagon — have considered, asserts Jim Powell, editor of Global Changes & Opportunities Report.

For the past 17 years our armed forces have only faced poorly-equipped fighters in ground conflicts in Afghanistan, Iraq, and Syria. There have been no naval or air battles whatever. Neither have there been any great power armies to fight.

As a result, much of the equipment — and most of the tactics — used by America's armed forces have never been adequately tested, and may be much less effective than expected.

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Even our so-called “smart weapons” and drones have never been subjected to countermeasures. Ditto for our battlefield communications and cyber warfare systems.

At the same time, a new Cold War is continuing to heat up between the US and the combined forces of China and Russia. The latter countries buried the hatchet several years ago and are now conducting joint military exercises that are clearly designed to deal with US forces.

Several smaller countries that are allied with the three major powers are also involved. The situation reminds me of the prelude to WW1 when the world was primed for a war — but nobody saw it coming.

Cyberwarfare has opened a new theater of conflict that many countries are working overtime to develop. For the US, cyberwarfare developments will cost billions of dollars, and probably a great deal more.

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It all points to more orders and profits for our leading defense companies. If you have not done so already, I urge you to take advantage of the stock market weakness and take positions in Lockheed Martin (LMT), Northrop Grumman (NOC), Raytheon (RTN), or General Dynamics (GD).

Of the group, I think Lockheed Martin and Raytheon offer investors the greatest promise for long-term profits. If you want to buy them, you should do it now.

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