I work for a major brokerage firm here in the US, and something interesting happened today. The markets are down, greatly in part to the tensions in the Middle East. Yet, while most everything is down, the defense sector is up. Lockheed, Northrop, Raytheon, and others recorded new 52 week highs today. War is making the rich richer, go figure.
Thats not all they said. They said defense contractor stocks went up despite everything else going down. Defense contractor stocks always spike right before a major incident, without fail. These acts of "retaliation" are also communicated via back channels before they actually happen, so its not like the stocks just so happened to be up.
As a general rule of diversification I always keep a few war stocks in the portfolio.
Cause I was raised in America and I know that at any given moment, we are probably an incident away from invading somewhere to bring peace and prosperity to someone who hates us
Dockworker strikes are a bigger component, Israel has been at war with Iran for a while now and the market is constantly pumping to all time highs. Dockworker strikes on the East Coast directly affects the US consumer supply chain and is argued to have a greater impact than the Middle East ongoing conflict
This is normal stock market shit.. if you worked for a āmajor brokerage firmā then that would not be very interesting to you.. considering that same situation happens with different industries pretty much every day.
Sure, how things are moving and play out, are all in well defined parameters, but I do in fact find it fascinating. In this specific example. Geopolitics and the current climate of the world in its regards, really pique my interests.
That's not "interesting", that's completely standard market behavior when the threat of war heightens. People are just moving their money into war stocks.
Kind of sad that someone that works at a brokerage firm knows so little about the market. Although since he said "at a brokerage firm" instead of "broker" I'm guessing he probably works in something completely unrelated like HR or sales and somehow thinks that gives him enough cache to make statements from a position of authority.
Itās Reddit, he may not work in a brokerage firm but threw that in there to get more credibility. They could also be the janitor or someone else with no actual working knowledge of the stock market.
With looming wars, it's fair to assume they're going to be ordered back to work in some capacity as the railroad workers were ordered back to work when they tried to strike.
I work for a major brokerage firm here in the US, and something interesting happened today. The markets are down, greatly in part to the tensions in the Middle East. Yet, while most everything is down, the defense sector is up. Lockheed, Northrop, Raytheon, and others recorded new 52 week highs today
thank god we have someone working in a major brokerage to tell us that war makes some stocks go down but stocks of companies that make the weapons used in the war go up.
Lol ok, nope, youāre right, I got my series 7 and 63 for nothing, and you definitely canāt find me on broker check. Not that Iād dox myself, but Iām there.
If Russia or China made cheaper, better missiles then Israel and Iran would buy from those countries. It doesnāt matter who sells the weapons, countries who want to kill each other will find the weapons to do so.
I donāt think anyone can blame Lockheed or Raytheon for making middle eastern dictators order missile strikes against each other.
True, you arenāt wrong, but Iām not trying to say that the Middle East tensions are the driving factor of todays instability, itās one of many. It does directly correlate to the price of those mil/aero stocks though. Thatās all Iām trying to point out. This conflict is good for their bottom line, because they directly supply weapons and tech to Israel and our other āpartnersā in the Middle East.
I agree on your sentiment for the military companies. Itās your comment about the broader market being down. But the broader market isnāt down because of the Middle East. If it were, it would also show in Oil. So you can infer that the market is down from other contributing factors like the port strike.
You think the rich owns the defense sector and the poor owns the rest of the market lol? The rich are getting poorer from the stock market overall going down too. A few companies in the defense sector going up doesn't outweigh that for the rich.
Im sorry but this is such a hilariously stupid comment. It is not at all interesting that demand in a given sector would bring more money to those markets. Rich or poor has zero to do with it.
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u/SpiritOfFire013 Oct 01 '24
I work for a major brokerage firm here in the US, and something interesting happened today. The markets are down, greatly in part to the tensions in the Middle East. Yet, while most everything is down, the defense sector is up. Lockheed, Northrop, Raytheon, and others recorded new 52 week highs today. War is making the rich richer, go figure.