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+--- Thread: Long Defense Contractors -Defense bill Passage (/showthread.php?tid=2085)
Long Defense Contractors -Defense bill Passage - Scooterd - 12-15-2021
For those with vested interest - The fiscal 2022 National Defense Authorization Act authorizes $770 billion in military spending, $25 billion more than Biden requested and about 5% more than last year's budget just passed.
Key highlights -
- 2.7% pay increase for the troops
- More aircraft and Navy ship purchase
- $$ in addition to strategies for dealing with geopolitical threats.
- $300 million for the Ukraine Security Assistance
- $4 billion for the European Defense Initiative
- $7.1 billion for the Pacific Deterrence Initiative (support for the defense of Taiwan).
- Ban on the Department of Defense procuring products produced with forced labor from China's Xinjiang region.
Under any circumstance (Bull, Bear, Fed taper / no taper, Economy, interest rates, inflation, deflation, stagflation, corporate valuations etc..etc..) just like clockwork every year a defense budget bill (ever increasing) is passed regardless of political agendas....I will be reading the bill once signed in greater detail to delve deeper into those companies I presently hold, (as well as those I may wish to start a new position within in 2022) that will benefit most greatly from the 2022 bills passage.
Long defense contractors for decades.
- Scoot
Greater love hath no man than this, that a man lay down his life for his friends. John 15:13
RE: Long Defense Contractors -Defense bill Passage - rnsmth - 12-15-2021
Long LMT here
Long Defense Contractors -Defense bill Passage - vbin - 12-15-2021
Long LMT, HII here. Looking to add more hii
RE: Long Defense Contractors -Defense bill Passage - fenders53 - 12-15-2021
I was on the receiving end of this in my career for decades. Defense cuts happen but the tech expenditures are usually funded. They cut personnel and the benefit costs associated with that first. Every time in my experience.
RE: Long Defense Contractors -Defense bill Passage - crimsonghost747 - 12-15-2021
Good info there. I do not really pay much attention to this, because it is as you said:
year after year, no matter who is in charge, the budget gets a tiny boost.
And the majority of the bigger contracts are decades long.
Indeed, long defense contractors for decades. Intelligence and communications are big and will only continue to get bigger. Hypersonics is just starting out. Space is in it's infancy, yet it'll the the same old companies (looking at you LMT) that will win a lot of the upcoming contracts. The big players will continue to be good investments as long as 'murica is among the very top of the list when it comes to world powers.
RE: Long Defense Contractors -Defense bill Passage - mrw11g - 12-15-2021
LMT, GD, LHX
RE: Long Defense Contractors -Defense bill Passage - cemanuel - 12-16-2021
I own LMT and GD - they were the two I have been able to buy at 3% yield in my taxable account at one time or another.
Under consideration for the IRA is just a buy a pool of companies - in addition to the above two, NOC, HII, RTX, a couple of others (not BA). They generally move roughly equal and when yield isn't a consideration I consider all to be pretty good companies.
The same possibility exists for some or all of the Canadian "Big 6" banks. Of course prices, market conditions, etc., when my money becomes available will have a lot to do with it.