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…

Strategic Tech Updates

Semiconductors Are Surging Again…

The world’s biggest semiconductor companies are taking concrete steps to shore up their manufacturing base in the West, beyond reach of any scheming Russia and China may be up to to thwart supply that’s already under pressure. Intel Corp. (INTC) announced they were building a $19 billion “mega-fab” manufacturing facility in Germany, which brings their running total on operational improvements in Europe to $88 billion. The markets like what they see; after a steep drop back in mid-January, the big chip stocks have been showing real strength lately. Applied Materials Inc. (AMAT) and Nvidia Corp. (NVDA) have both notched gains in the past five sessions. Prices still look good for a timely entry into the VanEck Semiconductor ETF (SMH) – a play we mentioned here…

…But Bitcoin and Crypto Are Doing Even Better

Not so long ago, investors would “hide” from the corrosive effects of inflation in precious metals, like gold; that’s an ancient safe-harbor investment.

But during this most recent bout of inflation, which is running near 40-year highs, savvy folks are moving into cryptocurrencies like Bitcoin (BTC) and Cardano (ADA). Their limited supply and ability to store value have made them, at last, viable substitutes for the yellow metal – for any precious metal, for that matter. When Fed Chair Jerome Powell addressed inflation recently, it sent Bitcoin and many major coins into “bull mode”; Bitcoin alone is up more than 10% over the past five days. In fact, the “granddaddy of crypto” has completely erased its recent losses. Unbelievably, just 15% of Americans are invested in this market. Michael thinks that number is way too low, and here’s why…

Get Ready for More Russian Cyberattacks

President Biden told American CEOs last Monday to “prepare” and have defenses in place for possible cyberattacks from Russia. Putin’s armies have stalled out in Ukraine, resorting to medieval siege tactics, but the Russian autocrat’s cyber-warriors are having much more luck on the digital battlefield. The problem was urgent after the Colonial Pipeline and JBS attacks last year; right now, it’s positively on fire. That makes cyber-defense companies a great play right now.

Cheers and good investing,

The Strategic Technology Investor Team