defenseanalyst

2 Comments

    • 13 Defense and Aerospace Stocks to Consider [view article]
      First a correction...defense spending rose in the final two years of the Clinton administration and began its decline under Bush Sr.

      Don't believe that a democratic victory in november will not necessary mean a decline in defense spending. Also don't believe that a democratic congress will increase spending on defense just because a republican is in the white house. Defense stocks have declined because of the perception held by aerowain but the actual budget is likely to remain the same regardless of who wins. There was a point made in the recent spade investor newsletter, a freebie from the people who put out the spade defense index if you're not familiar with it, that any decline in spending regardless of who wins would wipe out the party in future elections in the aftermath of another terrorist incident. I can picture the political ads that would run for 10 or 20 years pushing this fact, and I imagine so can you. The money would obviously be spent in differing places but that might not be a bad thing. And with the U.S. budget and financial mess we are in, it will preclude an increase in defense spending that aerorick is highlighting under a mccain presidency. Don't get me wrong, I think defense (and aerospace) stocks are hugely undervalued at this point and have put money into PPA (the powershares ETF) but I think the reality of the earnings and revenues the company's post won't be that different regardless of the winner in the upcoming election.
      Sep 22 11:56 AM
    • Suddenly, Safety is Sexy [view article]
      Dividends may be sexy is a flat market but PEY, sexy? Dividends can't make up for a fund that opened at $14.77 when launched in Dec 2004 and today trades at $13.78. Based on price, PEY has underperformed the S&P500 by nearly 20% in the last year. Aug 06 10:40 AM
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