Sunday, May 22, 2016

Weapons and Armaments Equities Seem To Be Popular

I knew the small arms manufacturers were outperforming:

SWHC Smith & Wesson Holding Corporation monthly Stock Chart
But was not aware how well the government-supported companies were doing.

From StockCharts:

Defense Stocks Remain A Must Own
The Dow Jones U.S. Defense Index has been annihilating its competition for the past few years.  It's very clear if you take a look at a longer-term relative performance chart.  Check this out:
This is an interesting chart.  During the bear market from 2007 to 2009, defense stocks performed very well on a relative basis.  But the start of the bull market in March 2009 was not kind to the DJUSDN.  In fact, this group underperformed for the first four years of the bull market.  They have made up for it since 2013, however, jumping from a .08 relative ratio (vs. the S&P 500) to nearly .155.  Simply put, the DJUSDN is without a doubt a group where you want exposure.
The above chart is a relative chart.  Now let's look at absolute performance:...MORE
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