By putting his nuclear forces on high alert February 28, Vladimir Putin turned the world upside down. It was the first time since the 1962 Cuban Missile Crisis that average Americans worried about the very real possibility of nuclear war. Same...
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Sector Watch: Defense
The Western defense sector is surging as Russia’s assault on Ukraine enters its second bloody month. Stocks like Lockheed Martin Corp. (LMT) and Northrop Grumman Corp. (NOC) that were slumping in December and January are powering much higher right now. Governments across the NATO alliance are boosting their defense spend – notably Germany committed to contributing 2% of its GDP to defense. There are still some hidden, undervalued stocks here, though…
If the market's choppy action has you feeling confused, that's a very natural reaction - to short term news. With inflation, skyrocketing gas prices, and war in Europe dominating headlines, we've seen major indexes show one-day swings of as much...
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This past January, I mentioned a defense stock that was on the verge of bottoming out at an incredibly attractive price.
A lot has happened since, of course – not least of all Russia’s invasion of Ukraine.
That’s given Wall Street a “wakeup call” and focused its attention on this stock, and the entire defense-tech sector. Famous names like Lockheed Martin Corp. (LMT) and Northrop Grumman Corp. (NOC) are up 14% and 21%, respectively.
In fact, since I first recommended this stock, it’s soared nearly 11%, or more than three times the performance of the sluggish S&P 500.
Why am I talking about a stock that’s already seen healthy gains? Why, because I’m expecting a lot more in the near future, of course.
Here’s why I’m even more bullish on this defense company than I was this past winter…
If all goes according to plan, U.S. soldiers are about to get what promises to be game-changing technology for their helmets: an advanced augmented reality (AR) headset that will vastly improve communication and battlefield awareness.
As such, it’s the kind of force multiplier that would come in handy in a war against, for example, the Russians, who are continuing their siege of Ukraine.
With the military version of what was originally a civilian headset costing about $3,500 each, the total five-year contract for the tech’s creator comes to a stunning $21.9 billion.
Here’s the thing. The firm supplying the new devices is much better known for personal and cloud computing, as well as gaming, and ranks as one of the top names in tech today.
We’ve used money for 5,000 years or so, but it’s about to get a lot more interesting – and useful and versatile, to boot. Fintech is finally coming into its own with the advent of cryptocurrency, the blockchain, and decentralized finance in general. Stocks like PayPal Inc. (PYPL) and Block Inc. (SQ) are two of the must-own names in this space; the foundation of every fintech portfolio. But some of the most promising opportunities in this space are still in the startup stage – where successful angel investments could have “generational wealth” potential. Here’s what we mean…
Space pioneer and EV titan Elon Musk recently delivered a devastating blow to the Russian military – all without firing a single shot.
Instead, he provided something incredibly vital for the defense of Ukraine with advanced communications technology.
See, the Russians had hoped to accomplish what any modern invading army would want to do. Destroying or damaging vital communications facilities would keep Ukraine’s government from talking to the outside world.
To stop that from happening, Musk activated several of his SpaceX Starlink satellites over Ukraine. That allowed the nation’s government to relay vital information inside the beleaguered country and talk with the rest of the world.
That last part played a crucial role in getting information about Russian attacks to Western Europe and the U.S., and explains why the $66 billion satellite communications industry is growing at nearly 10% a year.
Of course, SpaceX is privately held. But don’t worry.
Normally after a rate hike, stocks could be expected to go down. In this most recent case, though, they did the opposite.
The day of the rate hike announcement, investors acted like it was business as usual. The NASDAQ closed the day 3.1% higher after Powell spoke and then the S&P 500 started 2% higher today.
Even global stock market started the day higher in Japan and China.
There are a few reasons why this is the case. First, these rate hikes have been “baked in,” that is to say, expected, for months now, and much of that expectation is already reflected in share prices. It’s also likely investors were reassured by Powell’s contention the Fed has everything under control, and his much more optimistic 2022 inflation forecast.
But still – it’s not smooth sailing right now, and this is what you need to keep in mind…
In the 1960s, as the United States and Soviet Union set their sights on outer space and the Moon, the United Kingdom and France embarked on an expensive joint “moonshot” of their own: Concorde, the world’s first supersonic passenger airliner.
Concorde – at the bleeding edge of 1960s and 1970s aviation technology – transported passengers in fine style across the Atlantic Ocean in a matter of three or four hours, shrinking exponentially the distance between the global cultural and financial command centers of London, Paris, and New York.
Concorde flew for British Airways and Air France for nearly 35 years. It was a glamorous technological triumph, but a commercial failure, never able to sustain the passenger numbers needed for profitability. Concorde’s first and only fatal accident, in 2000, threw its problems into sharp focus, and the supersonic liner made its final flight into London Heathrow in 2003.
There have been no civilian supersonic flights to speak of in the 19 years since.
But there are tantalizing signs this is getting ready to change – and we can all look forward to faster travel across a smaller world in the near future.
After the Concorde stopped flying, there were still people with deep pockets exploring the possibilities of supersonic flying. Aviation consultant Brian Foley has said over the past two decades that he’s heard two thoughts frequently:
“The first is that no one denies there’s a market for supersonic jets,” and “The other thing is that manufacturers keep saying it will be within 10 years.”
Billionaire Robert Bass partnered with Boeing (BA) but recently gave up on his quest to build eight to 10 supersonic business jets.
Yet two other companies are still working on their version of the supersonic jet. Boston-based Spike Aerospace and San Jose-based Exosonic Inc. are working on projects, and Atlanta-based Hermeus Corp. is working with the United States Air Force on its supersonic vision.
Trouble is, most of these firms are still on the drawing board.
But a hungry, Denver-based aviation startup is hard at work on a radical new airframe – capable of hauling up to 88 passengers at speeds in excess of Mach 2.2, or about 1,600 miles per hour. That’s more than twice as fast as a Boeing 787 Dreamliner in normal cruise.
And whereas the competition is still in the drafting phase, this company is getting ready to fly its very own demonstrator this year.
With gas prices soaring, millions of American drivers are now considering the purchase of an electric vehicle (EV).
And the timing is actually perfect for one stock to reap the benefits, as the Biden administration is prepared to boost EV mass adoption with $5 billion already allocated toward the effort.
While not directly related to current news – including the impact a blockade of Russian energy will have on gas prices – the money was set aside as part of the $1 trillion infrastructure plan that cleared Congress last year in a rare bipartisan effort.
It plans to use that money to solve one of the biggest obstacles facing EV sales: range anxiety. There simply aren’t enough charging stations located along major highways that provide quick “fill-ups.”
The White House is investing heavily to put those platforms in big states like California, Florida, and Texas.
And this one stock I’ve identified is set to cash in on both EV charging stations and the vehicles themselves.
Let me show you why it’s set to double earnings in as little as 2.5 years…