U.S. stand-off with Iran? Investors in Defense companies inconsistent with Hawks.
Michael Gayed on Defense stocks and conflict with Iran.
With increasing rhetoric over a possible military action over Iran and its nuclear program, I thought it might be worth looking at the performance of defense companies to see if investors are anticipating a pickup in government defense contracts. As followers of my approach to intermarket analysis are aware, I like to see if price confirms words, since investors send messages either consciously or subconsciously through relative price. Presumably, within the context of the idea of a coming military conflict, money would position ahead of time for it if indeed it were seen as a high probability situation.
Does price confirm rhetoric? Take a look at…READ MORE HERE
The article is written by Michael A. Gayed, CFA. Gayed is Chief Investment Strategist at Pension Partners, LLC, an investment management firm which uses quantitative strategies to buy and rotate across various ETFs in an effort to generate absolute returns.