I’m always grateful that Merrill Lynch keeps me abreast of the latest investment opportunities. According to their new report, the Global Defense sector is undervalued, because we are starting a new global arms race. But because they are cautious brokers, they make clear to point out the downside risks to jumping in with all your cash into Northrup Grumman, Boeing and the like.
US elections might be a short-term risk,but could provide a longer-term buying opportunity.
The point they make is that Obama might put a crimp in this investment theme and push these stocks down in the fall. But not to worry, in the long term, they will do just fine. It’s not smart to bet against the war profiteers.