Defense Stocks Hit New Highs

Defense Stocks Hit New Highs

money.cnn.com

WASHINGTON (AP) - Defense stocks on Wednesday hit new highs as Defense Secretary Robert Gates requested an extra $42 billion in funding from Congress to cover military costs in Iraq and Afghanistan in 2008.

The AMEX Defense Index, which tracks 14 major defense company stocks, rose 14.25 to a high of 1,686.72 in afternoon trading. Since last year, the index has risen roughly 47 percent, outperforming the broader S&P 500 index, which has climbed nearly 15 percent over the same period.

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The story only cites continued spending in Iraq and Afghanistan, but I firmly believe that that should have already been priced into the market. I think the markets are telling us that they are betting on some type of new conflict, likely with Iran.

money.cnn.com
(visit the link for the full news article)



[edit on 9/26/2007 by djohnsto77]

Why is it that when I see the term "Defense Stocks" I get that sick feeling in my stomach? It's as if the war is a business intended for profit and nothing else.

Anyhow, yes, a surge in funding does indicate that either something is afoot, in which we are being kept in the dark about... or that the current government that was implanted to take over when the US leaves is simply not adequate, and they are about to be replaced, at a price.

It should be interesting to see what happens in the next couple of months.