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Defense Companies Earn Their Name

There appears to be consensus that defense spending will remain intact for the first year of the new president's term, assuming prolonged economic weakness. The war in Iraq and increased military involvement in Afghanistan could benefit companies. Current uncertainty may represent an unusual buying opportunity or, alternately, a forecast of future decline. Consider macroeconomic, political and idiosyncratic risk before investing in aerospace and defense companies.

Employees of TheStreet.com Ratings with access to pre-publication ratings data must pre-clear any potential trade through the legal department and are prohibited from trading any security that is the subject of an unpublished rating revision until the second business day after the rating is published. While employees cannot provide investment advice or recommendations, the writer appreciates your feedback and can be reached at jake.lynch@thestreet.com.
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