Defense Stocks

[Old Tusk]

I'm considering taking profits and reinvesting in defense. Haven't had luck finding an ETF.  Any suggestions?

[Horsesrus]

ITA is an aerospace and defense ETF. I have no opinion or comment on its quality of investment.

[Old Tusk]

Thanks I will check it out.

[PEtrader]

Interesting,  why defense?

[Old Tusk]

First is the fear factor in the country will end the sequester limits on military spending. All the branches are campaigning for expensive new weapons systems. The NATO countries have been cutting spending to the point they probably can't meet their obligations. Russia will force spending increases. I believe we are positioned for a major spending spree even though we can't afford it.

[BigBrandonAllenFan]

I'm considering taking profits and reinvesting in defense. Haven't had luck finding an ETF.  Any suggestions?

>> Quite possibly the US military's #1 top dollar investment currently for research and development of machinery.  Northrop Grumman ain't going broke anytime real soon, you can bet that.

http://www.marketwatch.com/story/thi...bay-2015-11-16

The U.S. aims to secure its advantage in conventional battle for years to come.

The U.S. Air Force is developing a new bomber that promises to secure the U.S. advantage in modern warfare.

The next-generation long-range strike bomber, recently awarded to Northrop Grumman Corp. NOC, +3.70% for development, will not be designed to rely on as yet undeveloped technologies, as is so often the case with new aircraft and weaponry. Instead, the aircraft will combine and fully exploit existing advanced stealth technology, integrated software, ordnance and countermeasures.

In effect, the military is consolidating the best of its technology in one package. At the same time, the U.S. Air Force has decided to aggregate all of its bombers under a single, unified command, clearing the way to making bombers a more central part of its operations. Thus the new long-range strike bomber is poised to become a central pillar of the U.S. strategy to project its power throughout the globe.


Maintaining an edge in conventional warfare

The B-2, the latest bomber model currently in use by the U.S. Air Force, was developed nearly 20 years ago. Since that time, newer aircraft have incorporated the significant technological advancements that have been made since the B-2's inception. Some of this technology has made its way into the United States' B-52, B-1B and B-2 bomber fleets, but the new bomber model will bring all of these technologies together in one comprehensive design, making fuller use of each to better meet modern strategic and tactical needs. At the same time, the new bomber is designed to be especially easy to upgrade as more advanced technology emerges.

The next-generation bomber comes not a moment too soon. Although the United States' current bombers will last for some time, they are rapidly losing their competitive edge against the aircraft developed by rapidly strengthening military powers such as China and Russia. And while the bulk of the current U.S. bomber force will have to be replaced by 2037, the U.S. Air Force expects Chinese technological advances to overtake the most modern B-2 bomber much sooner, perhaps as early as 2020. The introduction of the new long-range strike bomber — and in particular, its more advanced stealth technology — will therefore be critical to maintaining the U.S. advantage in conventional combat operations.