Syria-to-Ukraine Wars Send U.S. Defense Stocks to Records - Bloomberg
Led by Lockheed Martin Corp. (LMT), the biggest U.S. defense
companies are trading at record prices as shareholders reap rewards from
escalating military conflicts around the world.
Investors see
rising sales for makers of missiles, drones and other weapons as the
U.S. hits Islamic State fighters in Syria and Iraq, said Jack Ablin,
chief investment officer at Chicago-based BMO Private Bank. President
Barack Obama approved open-ended airstrikes this month while ruling out
ground combat.
“As we ramp up our military muscle in the Mideast, there’s a sense that
demand for military equipment and weaponry will likely rise,” said
Ablin, who oversees $66 billion including Northrop Grumman Corp. (NOC)
and Boeing Co. (BA) shares. “To the extent we can shift away from
relying on troops and rely more heavily on equipment -- that could
present an opportunity.”
Bombardments of Islamic State
strongholds added to tensions this year that include U.S.-led sanctions
on Russia for backing Ukrainian rebels and China’s feuds with neighbors
over disputed South China Sea islands. The U.S. also is the biggest
foreign military supplier to Israel, which waged a 50-day offensive
against the Hamas Islamic movement in the Gaza Strip.
This still image made from video released by the U.S. Central Command on Sept. 23,...
