After a massive proposed $54 billion increase to military spending in the Trump Administration’s first budget outline, it’s clear where the president’s priorities are. Despite concerns that Trump would pressure defense contractors’ margins, it appears he could be very good for the industry after all. What companies or stocks are the biggest winners here? Not only was the budget an eye-opener, but early rhetoric from the Trump Administration suggesting they can “go it alone” vs. North Korea, as well as concrete actions, sending hundreds of troops into both Syria and Iraq to help combat ISIS, for instance. This signals Trump may be less isolationist than assumed. With the recent use of chemical weapons in Syria, and Russia perhaps gearing up to become more aggressive with Baltic States to test America’s resolve, ramped-up military action looks quite probable. I am looking for comments on what stocks may be primed to rally in an environment like this, and why.
Are Defense Stocks for or LT Rally Under Trump?