No. of Recommendations: 6
Despite the launch of Operation Epic Fury against Iran in late February, U.S. defense stocks have moved lower rather than higher, prompting a UBS analyst to pen a note to clients this week attempting to answer why the makers of missiles and tanks failed to sustain a wartime rally.
Analyst Allyson Gordon asked the question: "Why Is US Defense Performance Lackluster?"
Let's start with iShares U.S. Aerospace & Defense ETF, or ITA, a basket of major U.S. defense firms. ITA caught an early bid in the first phase of Operation Epic Fury, but the rally failed to hold shortly after that. By late March, the fund was down nearly 16%. The fund has since rebounded in recent sessions, trading around $223 on Thursday morning, but the defense complex's inability to sustain a war-driven rally caught investors off guard.
And that was from an article in zerohedge…..
Word has it that Kegsbreath loaded up on defense stocks in the hours leading up to Epic Flounder.
No. of Recommendations: 3
its been obvious that the american defense sector is already losing longterm business , with the hope they can pull it forward under trump.
in reverse chronology :
- priority delivers (mostly to EU and nato) are already being redirected for use on behalf of israel AT NO COST to them. (under 'national security' or whatever blather MAGA will accept). this amount only steepens daily.
per usual trump deals, delaying lawsuits over non-delivery are a standard part of his reneging option. in summary, when you pay a premium to get early delivery for your own security needs, trump is really exposing who he believes to be the stupid\gullible party.
- peddling nato platform compatibility is kinda useless when america says its not going to participate in wars they dont initiate (or are initiated into).
- defense sales were pimped by trump as part of his personal trade\bribe deals. so the trust level was benchmarked then.
