The U.S. government is still spending... and "offense" contractors are still raking in billions.
A little over a year ago, we noted how the U.S. is involved in so many foreign wars that defense contractors should be called "offense" contractors. We also noted how many folks warned against investing in this industry... due to an expected reduction in government spending. But today's chart shows this hasn't been the case at all...
Our chart displays the performance of "offense" contractors Northrop Grumman (NOC) and Lockheed Martin (LMT) over the past two years. They produce things like jet fighters, missiles, radar systems, and unmanned aerial drones. They rely almost entirely on government spending.
And as you can see, the government is still spending plenty of money on offense. Shares of both Northrop and Lockheed are up about 100% over the past two years – and nearly 80% since our first note. Last week, both stocks hit new all-time highs. Despite claims to the contrary, no cutbacks are affecting these stocks.
