If Donald Trump makes good on his tough-guy rhetoric, his administration will implement an aggressive and interventionist foreign policy in regions around the world. The president-elect is ready to cry havoc, and let slip the dogs of war.
Trump's roster of defense advisers and potential Pentagon officials is a "who's who" of neoconservatives and right-wing hawks, from John Bolton to Newt Gingrich. During the contentious campaign, Trump repeatedly asserted the U.S. needs to "get tough" with not only terrorists and nation-state rivals, but also with American allies such as NATO. The almost certain result: a massive multiyear boost to the already large U.S. defense budget.
Below, we pinpoint the single best trade to make amid this bellicose reality. The ugliness of war can't be wished away; savvy investors are dispassionate and deal with the world as they find it. If you're looking for a highly lucrative investment trend with long-term momentum, the unstoppable rise in defense spending fits the bill.
Several blue-chip aerospace/defense stocks are smart investment bets on the coming era of militarism under Trump. They include Boeing, Lockheed Martin, Northrup Grumman, Raytheon and General Electric. All of these stocks are poised to gain in 2017 and beyond, as their coffers are filled with military largess from Uncle Sam. Problem is, the extent of their capital appreciation is limited by their sheer size.
General Electric is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. See how Cramer rates the stock here. Want to be alerted before Cramer buys or sells GE? Learn more now.