$2 Trillion Spent (And Probably More Coming)
Two trillion dollars.
That’s how much Trump’s last order for military defense tech was, according to a tweet yesterday.
If things continue to escalate with Iran, this spending could balloon even more.
Market legend and newest Seven Figure contributor Kenny Polcari notes:
Let me be clear, this is NOT a good situation. We have seen “flare-ups” before in the Middle East, which has caused global angst. But the biggest risk now is that THIS event spins out of control, drawing other Middle East countries into the fold, creating yet another big issue for the world and the markets. If this escalates, we could be in for a much more volatile time ahead.
Humans and conflict go hand in hand and have for eons. It was (or will be?) only a matter of time before the U.S. or its allies are in a hot war again.
It’s a cold, hard reality. But thankfully as investors we don’t have to get into a back-and-forth on the politics behind these events.
Instead, we can focus on ways to increase our wealth as geopolitical tensions spike once again.
First up, Defense Tech ETFs
Your one-stop shop for all things defense tech starts and ends with a handful of defense-centered ETFs.
And as tensions in the Middle East rise, these ETFs’ share prices are rising along with them.
Take for instance the SPDR S&P Aerospace & Defense ETF (XAR). This ETF lands right in the sweet spot of mid- and large-cap high-growth industries. This includes companies like United Technologies (NYSE: UTX), Teledyne (NYSE: TDY) and Raytheon (NYSE: RTN).
The ETF has popped nicely over the past five days. If tensions boil over between the U.S. and Iran, this ETF could continue to surge.
But that’s not all. There’s a much stealthier play at hand too.
Seemingly unrelated on the surface… there’s something I learned at an oil tech conference back in October that really worries me regarding our conflict with Iran.
Our infrastructure, especially that related to energy production and consumption, is unbelievably vulnerable to cybersecurity attacks.
To put this danger in perspective, here’s a scary fact relayed by Ken Munro of Pen Test Partners, a leading cybersecurity solutions firm focused on identifying and solving these types of vulnerabilities.
To paraphrase, many captains sailing massive oil tankers and IT engineers designing offshore rig communication systems firmly believe their remote proximity offshore is good enough cybersecurity.
But as Ken simply points out… if you can get satellite TV for your crew on those ships and rigs, a hacker can access your systems too. Very easily, I might add too.
Many of us sat in the grand ballroom of the Marriott Westchase in Houston watching in awe as Ken showed us how easy it was to hack one of these giant oil tankers.
With a few lines of code and command prompts, he “tricked” the oil tanker’s GPS into thinking the ship was just off the coast of Galveston, Texas, when in reality this ship was 20 miles away, sailing blindly in a completely different location.
In tight shipping lanes like the Port of Long Beach near LA or the Strait of Hormuz, this could cause disaster.
And if I know this, rest assured the Iranian-backed proxy forces know this too, and cyberattacks like this are top of the list for these groups seeking “severe revenge.”
Keeping our network infrastructure safe is going to be defense agenda No. 1 in 2020. And tech plays related to this new age of cyberwars will help you profit big-time.
For a look at some of my favorite companies in this space, check out my previous report here.
For Technology Profits Daily,
Chief Technology Expert, Technology Profits Daily