National Defense Is a Rock-Solid Investment

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I attend elementary school in the hills of rural Kentucky near the Ohio River. Recently,
one of my first memories of these years of training, it re-emerged,
brought on by new tensions in the United States with an increasingly
militant Russia and an escalation of rhetoric with North Korea.
Both countries have a nuclear capability.
Like
all early childhood memories, the details are a little misty, but I
remember the sirens, and quietly ordered us to put teachers under our
desks, we run away from the windows and “hang”.
I do not remember saying much about why we hid under our offices, we needed that we protect.
Some of our readers will remember veterans who practice “duck and cover” well. It
was a method that the government promoted during the Cold War to
protect against a nuclear attack, based on the belief that standing and
discovered during an attack was likely to cause serious injury or death.
The
practice died in most countries in the late ’70s, but old habits and
customs have a hard life in rural America, so I caught the end of this
practice from the Cold War era to
primary school .
I did not think much of “duck and blanket” at that time. After
all, it was very similar to our monthly tornado exercises, except that
we had to play under our desks for about five minutes instead of
dropping into the corridors of the doubled concrete basement.
In hindsight, however, the practice seems less on real security and
more to provide a reassuring feeling of a fearful population.
The
feeling is something that investors can fully understand, and many have
become duck and cover style habits in the midst of the current
geopolitical situation.
But, like the primary school years, such practices could end up doing more harm than good for your portfolio. Instead of squatting in the shelter, an active investment in a leading
company in the defense sector could let him go offensive this time
around.
And there is a company in the defense sector is already involved in the thick of things.
You left a bomb on me, baby
With
a market capitalization of over 45,000 million, Raytheon Co. (NYSE:
RTN) is one of the largest defense contractors in the United States.
The
company has its hand in almost every aspect of the United States
military defense, with divisions specialized in integrated defense
systems;
Intelligence, information and services; Missile systems; Air and space systems.
Raytheon is also the fourth largest contractor in terms of defense
spending in the United States, and the company has about $ 13 billion
required as the Department of Defense (DoD) in 2015.
The
company secured the titles in early April after President Donald Trump
authorizes a Syrian air raid with 59 Tomahawk cruise missiles in
retaliation for the use of chemical weapons by the country.
Originally developed by General Dynamics in the 1970s, the weapon has
long been a surgical wound of preferred tool and retaliation for the
Department of Defense.
Raytheon
now manufactures the Tomahawk cruise missile for just over $ 1 million
each, with analysts putting the cost of replacing those used in Syria to
about $ 60 million in total.
So far, Trump seems to fulfill its promise not to involve land troops in conflicts in the Middle East. The pursuit of this policy could result in air strikes in the future,
and this means more revenue for Raytheon than the Department of Defense
relies on its weapon of choice.
Someone looks at me
As
mentioned above, Raytheon has a solid source of revenue for the
traditional US defense operations, which is reassuring for investors
looking for high portfolio returns.
But the company does more than make bombs. In fact, the biggest source of revenue is the sale of Raytheon
utilities, banks and retailers … and of course your local electricity
company does not buy Tomahawk cruise missiles.
In defense, and upgrade or innovate you get left behind and the new line is battlefront. Raytheon looks at the emergence of cyber warfare with the cyber division, Forcepoint security. Forcepoint
is specialized in stealth applications, security software and hardware
used to combat hackers, both foreign and domestic.

National Defense Is a Rock-Solid Investment

Defense, Investment, National, National Defense Is a Rock Solid Investment, Rock, Solid

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