Trends Supporting Investment in Security-Related Stocks
World events have the potential to greatly impact the stock market, so it is important that you as an investor keep track of security concerns. The horrific events of September 11, 2001, ushered in an era where Americans became mindful of the idea that the U.S. is an enduring target where extremists and militants bring harm directly onto its shores.
You can’t calculate the seriousness of this on most levels, but it has become a reality Americans deal with. This era brought entities Americans had never dealt with before, such as the Transportation Security Administration (TSA) and a greater presence of video cameras almost everywhere.
In addition, recent economic difficulties have engendered a situation where crime and fraud have clearly upticked and the populace is more mindful of personal safety. Recent data shows that gun purchases have hit record highs.
In addition, many municipalities have experienced very bad financial times. Unfortunately, much of this was self-inflicted as these local governments spent more than the tax revenues they received. Consequently, many of them have had painful shortfalls in their budgets, and the result is cutbacks in their workforce (such as police and firemen).
The bottom line with all of these factors is that the public has seen fit to find more ways to increase its security. For stock investors, the objective is clear. Find those companies that are profitably filling this demand with security-related products and services.
The U.S. will continue to retool its military and seek ways to monitor, track, and attack terrorists. Defense companies that sell certain products and services will benefit. For publications that do a great job informing investors and speculators regarding the war economy, check out the U.S. & World Early Warning Report.