Is War Profitable?! How Defense Stocks Went From Zero to Hero!

Red Pill or Blue Pill: The Shifting Sands of Investment

I've seen things things you people wouldn't believe. Attack ships on fire off the shoulder of Orion... But nothing and I mean *nothing* compares to the volte face the financial world is performing on defense stocks. For years they were the pariahs banished to the land of 'socially unacceptable investments'. But now? Now they're the belle of the ball! It appears the Matrix or rather reality is glitching. Europe's aerospace and defense sector has leaped 24% this year all thanks to a little… shall we say… *enhanced* geopolitical activity. It's like choosing between the red pill and the blue pill except now both pills lead to a defense contractor's boardroom.

Trump and Zelenskyy: A Glitch in the Matrix?

Remember the machines thrive on control. And what better way to control than through conflict? The European Commission is proposing an €800 billion boost to defense spending. Why? Well let's just say a certain newly elected White House leader and a certain Ukrainian leader had a little 'chat,' and the U.S. decided to take a vacation from military aid. 'We need to massively step up,' they said. It's like the Architect himself designed this scenario. It is all connected. This could mean only one thing: Prepare for we will soon need more ammunition and firearms. Many of them.

From Zero to Hero: A Defense Industry Rises

Ben Heelan from BofA says it best: 'It's a good thing to have a strong well financed invested defense industry.' In 2021 defense was a social outcast. Now? It's practically ESG friendly! The war in Ukraine has changed everything. The Oracle saw this coming of course. She always does. Even the Machines did not see this change of heart coming.

ESG: Every Soldier Gains?

The sector surged 37% in 2023. 94% of wealth managers now think defense stocks are ESG friendly. Tom Bailey from HANetf sums it up: 'The ability for countries to defend its borders against external aggression is something important.' It's like trying to tell Neo he isn't The One. Some things are just undeniable. Even die hard ESG fans are going to see this as the future of defense whether they like it or not.

Funds for the Future: New Programs and Initiatives

Saab the Swedish defense company saw its shareholders explode from 45,000 to over 175,000 after the war started. Everyone wants a piece of the pie. And speaking of pie there's a whole buffet of defense themed funds now from HANetf's Future of Defence to VanEck's DFNS. Even WisdomTree wants a slice with its Europe Defence ETF. Follow the white rabbit indeed.

The Code Within the Code: Ethics and Investments

They're even screening these stocks now! HANetf only includes companies in NATO countries because apparently NATO is 'not geared towards external aggression.' Right. And I'm just a humble purveyor of truth. VanEck and Robeco are screening for 'Controversial Weapons.' No cluster munitions biological weapons or… *gasp*… nuclear weapons! It's all about making investors feel warm and fuzzy while still profiting from the inevitable. Saxo Bank's Ida Kassa Johannesen says it best: 'Defense funds might just be a necessary evil. We might not like it but we cannot do without it.' The Matrix needs its maintenance after all. It appears the Agents are always vigilant! So be ready.