Profiteering
Posted on April 18, 2007 by Richard Beddard
Filed Under Markets |
This week’s we focused on the defence industry, and Wallstrip looked at the defense industry:
Trend-loving, hyper-texting Howard Lindzon who created Wallstrip and runs an investment advisory and fund of funds says:
This trend seems like the absolute no brainer in hindsight (especially since the breakout of the Iraq war), but who is to say the trend can’t continue? I have written about the trend in the past and exposure to the industry is a smart idea for any long-term portfolio. We are a nation fascinated with death and destruction just like our ancestors. There is no reason to believe that future generations won’t behave the same way.
Let’s hope he’s wrong, about the future. He’s right about the trend, though I tend to think in terms of cycles rather than trends and so have some sympathy with Vic, who commented on the video:
Well now that defense stocks are up - it is likely they will come back to the foxholes with changing voter moods. Massive govt. spending on defense (and homeland security employment programs) were critical after 9-11 to give a Keynesian boost to a dead “world” economy. It should have been a no-brainer then to invest in defense. But, that crisis is over now and the trick is to slow the govt. spending again.
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