Prospects for growth in the price of shares of defense enterprises.
Another relative calm has ended, and the world is once again entering a period of escalation. Most countries are dramatically increasing their defense budgets.EU countries spend 219 billion a year on defense, even for Europe this is quite an impressive amount, and in 2017 most EU members will increase their military budgets by 15-20%.
The Baltic states are also trying to keep up with their colleagues; starting next year, the Baltic countries will increase military spending by 50%.
After that, the total cost will be $1.45 billion.
The Asian region - China, which already spends quite a lot on weapons, 191 billion last year, decided not to stop there. China increased military spending by 4% in 2017 and will now amount to $198 billion.
In addition, the military budgets of countries such as Ukraine, Russia, and India are growing rapidly.
The situation in world politics contributes to the growth of shares of enterprises of the military industrial complex or companies closely related to the defense industry.
Therefore, you should pay attention to the shares of such companies as Boeing, BAE Systems, Lockheed Martin, Northrop Grumman, EADS. After all, they gave the greatest growth precisely during periods of instability and increased government funding.
The trend is expected to continue until at least 2020, meaning this is an excellent opportunity for long-term investors.