What I Am Buying Today.

[crimsonghost747]

(03-02-2022, 10:53 AM)fenders53 Wrote:

(03-02-2022, 10:14 AM)poneyboy Wrote: Added to some of my big dividend payers that are near lows

MMM, CMI, SMG, HON, CAT and MRK

Trimmed more oil in the pre-market

Looking for value now

Nice to see LMT and NOC down after trimming those lol

It's odd the market doesn't realize defense stocks make 90% of their money on contracts signed years ago that pay out for 3-20 years.  They went meme stock mode as if Ukraine is going to improve their numbers this year. They always spike on trouble anyway.  

Now oil I have no clue.  They can make more money next week on a price spike.  Probably not near a top but the market has been straight up so I don't blame you for trimming.

I do think the majority of the price increase in defense stocks is warranted. It may even be underestimated. 
3 months ago everyone was still in the mode where defense spending was a waste of tax payer money.
Now I'd say that pretty much every western country has at the very least hinted at significant boosts to their defense budgets. Germany threw in a nice little +100% to previous year. (they have been severely underfunding for over a decade now) Several others have already announced that they will be increasing their defense budgets. 

This is a very, very bullish situation long-term. Even if this war ends tomorrow, it has been enough to convince politicians that defense spending is necessary. Most EU countries have been very skeptical of spending money on defense in the past decade or two. I don't need a crystal ball to declare that this trend ended one week ago.