{"id":1383014,"date":"2022-03-16T01:21:09","date_gmt":"2022-03-16T05:21:09","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1383014"},"modified":"2022-03-16T01:21:12","modified_gmt":"2022-03-16T05:21:12","slug":"defense-stocks-outperform-after-russian-invasion-of-ukraine","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/defense-stocks-outperform-after-russian-invasion-of-ukraine\/","title":{"rendered":"Defense Stocks &#039;Outperform&#039; After Russian Invasion of Ukraine"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fdefense-stocks-outperform-after-russian-invasion-of-ukraine%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1383014&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><\/div>\n<p class=\"subheading\">Defense stocks have outperformed the market in the wake of the Russian invasion of Ukraine, according to a recently published Bank of America global research report.<\/p>\n<p>\u201cThe Russo-Ukrainian conflict has ensured investors of a rising defense budget and triggered the recent outperformance of defense names related to the S&#038;P500,\u201d said the\u00a0March 7, 2022, report by research analysts at Bank of America Securities and Merrill Lynch.<\/p>\n<figure id=\"D-ROS-B1\" class=\"a8d\"><\/figure>\n<figure id=\"M-ROS-B1\" class=\"a8d\"><\/figure>\n<figure id=\"gmxrevmore\" class=\"H\"><\/figure>\n<p>The report said predicted a boost in defense spending in both the U.S. and Europe that would bring the U.S. defense budget to a record $900 billion by fiscal year 2025.<\/p>\n<p>\u201cWe estimate the U.S. defense budget could rise to at least 3.5% to 4% of GDP on this paradigm shift. We now expect U.S. defense spending in FY2023 to be $800bn with the likely return of Overseas Contingency Operations (OCO) Funding and exceed $900bn by FY2025,\u201d it said.<\/p>\n<p>\u201cWe expect the NATO \u2018soft\u2019 target for defense spending (2% of GDP) to become a \u2018firm\u2019 target or floor. Currently, only four countries meeting this target; there are 20+ more to go. Our UK analyst Benjamin Heelan expects more governments to announce plans to meet the 2% of GDP NATO targets,\u201d it added.<\/p>\n<figure id=\"M-ROS-B2\" class=\"a8d\"><\/figure>\n<p>The report also said defense stocks had been undervalued over the previous year as investors weighed concerns of a declining defense budget under the Biden administration.<\/p>\n<p>However, investors saw a \u201cstrategic shift\u201d when\u00a0the Senate Armed Services Committee planned for a $740 billion National Defense Authorization Act in July.<\/p>\n<p>\u201cThe NDAA included an additional $25 billion in top line defense spending above the Biden administration\u2019s previous budget proposal, reflecting bipartisan support for greater defense spending to counter rising tensions in Asia-Pacific,\u201d it added.<\/p>\n<p>Still, investors \u201csought a catalyst that would confirm a real defense budget increase.\u201d<\/p>\n<p>\u201cWe see the Russo-Ukrainian conflict as this catalyst, which has consequently triggered a re-rating of defense stocks; investors are now surer of a rising defense budget as the U.S. balances between newfound concerns in Eastern Europe and existing threats in the Pacific,\u201d it said.<\/p>\n<p>The analysts also said the conflict was shaping up to be the largest in Europe since World War II, and both the U.S. and NATO members are now focusing on how to defend against a \u201cmounting Russian threat and a potentially larger Russian border with NATO.\u201d<\/p>\n<p>\u201cThe U.S. will now need to balance defense priorities between Eastern Europe and Asia-Pacific,\u201d it said.<br \/><strong><em>Follow Breitbart News\u2019s Kristina Wong on <a href=\"http:\/\/www.twitter.com\/kristina_wong\">Twitter<\/a>\u00a0or on <a href=\"https:\/\/www.facebook.com\/kristinawongreporting\">Facebook<\/a>.<\/em>\u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Defense stocks have outperformed the market in the wake of the Russian invasion of Ukraine, according to a recently published Bank of America global research report. \u201cThe Russo-Ukrainian conflict has<\/p>\n","protected":false},"author":1,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1383014","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1383014","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1383014"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1383014\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1383014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1383014"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1383014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}