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We're looking at a multi-year, three to five year typically view. We think defense spending is going to continue to increase. We actually have been buying defense stocks in mid-January at fairly good valuations in our view. We're talking 12 to 16 times PEs and EBITAs at 10, 11 times. But again we think the EBITA is too low. So we think we're picking those up actually at better values. I would say for a long term oriented investor, defense is a really interesting place to look. I mean these companies know their revenue streams. They have pretty good visibility on what their revenue looks like. Then they also have almost fixed margins. So we view it almost as this utility like business where you know your margins, you know your revenue and then you just have to pick the companies who are going to see the most outsized benefit from increased defense spending. So we really are very constructive on defense still.

So, we've heard from Jim Cramer--who has warned investors to steer clear of defense stocks, like Lockheed Martin (LMT - Get Report) , Raytheon (RTN - Get Report) Northrop Grumman (NOC) ahead of the State of the Union -- but Ben Phillips, CIO at EventShares, says that he and his company--which is an investment manager that focuses on the marker impacts from legislation, regulation and fiscal policy--have a different take.  

"We're looking at a multi-year, three to five year view. We think defense spending is going to continue to increase. We actually have been buying defense stocks in mid-January at fairly good valuations in our view. We're talking 12 to 16 times PEs and EBITAs at 10, 11 times. But again we think the EBITDA is too low. So we think we're picking those up actually at better values," Phillips told TheStreet

Related. Jim Cramer: Buying Weakness Is a Good Strategy This Earnings Season

"I would say for a long term oriented investor, defense is a really interesting place to look. I mean these companies know their revenue streams. They have pretty good visibility on what their revenue looks like. Then they also have almost fixed margins. So we view it almost as this utility like business where you know your margins, you know your revenue and then you just have to pick the companies who are going to see the most outsized benefit from increased defense spending. So we really are very constructive on defense still."

Want to hear Jim Cramer's thoughts on defensive stocks? Head on over to ActionAlertsPlus.com.