Defense Contractors. Is now the time to buy?

Defense Contractors, we all know them, they make the big bad weapons and weapon systems that make the rest of the world fear our power and wrath. Is now the time to invest in this sector?

Well from my point of view I am saying yes. Why you ask? Well let's review what is going on with our Armed Services and the wide world of politics.

First it is pretty easy to see that our Armed Services do not have people lining up to join their favorite fighting team. To you none military that would be the Army, Navy, Marines, Air Force and Coast Guard. In fact this years recruits have the highest number of State court ordered "volunteers". These recruits are people that, well let's just say get into a little trouble with the local law enforcement agencies. Instead of sending them to jail we send them to the Armed Forces and then to a local conflict somewhere in this wonderful world we live in. Oh just a reminder to those who don't know but we are NOT in a war. Congress has not passed a declaration of war so stop saying we are in a war. We are not. It is a conflict.

Anyway, since our recruit strength is down we have to combat this shortage with technology. Examples would be developing superior air power (jets), sophisticated bombs and weapons. Now as you all know the military does not do this weapon manufacturing. Who does? Well it depends on who wins the coveted defense contracting bids. See it is all about this bid. There are many to bid winners to choose from. But to keep from naming every last manufacture who bids on these contracts I am only going to stick with the ones that I know and will continue to win government contracts.

Also, it is important to note that this newly elected Democratic House is going to do absolutely nothing to pull out our forces in Iraq. In fact we will have less forces in Iraq during the "surge" then we had at the beginning of this conflict. So you can bet your sweet pickles, defense spending will grow and your newly elected leaders, who swore they would pull the troops out of Iraq are going to do nothing. Bad news for the sheep who voted them in, good news for investors who want to make money in the stock market. God I love politics!

So here we go:

General Dynamics - GD
Lockheed Martin - LMT
Boeing - BA
United Technologies - UXT
Raytheon - RTN
Northrop Grumman - NOC

Now you may be saying these are the leaders. Well you are right. They also buy up any new competition so this leaves them at the top of the hill as industry leaders. I hope you enjoy looking at these organizations. Thank the stars above for our new leaders in office!

Happy Bombing and other crazy stuff only we can do!