🗣 The decline of stocks of American defense companies: are investors expecting a quick end to the conflict?
After Donald Trump was elected President of the United States, the stocks of leading defense companies such as Lockheed Martin and General Dynamics lost more than 20% of their value in less than six months. This may indicate that investors are anticipating a swift conclusion to the war and possible overproduction in the U.S. defense sector.
Interestingly, the stocks of Raytheon, considered a "bet" on a possible conflict with Iran, not only did not decline but also showed growth. This may indicate investors' expectations for continued arms supplies to Israel from the Pentagon.
Movements in the stock market may reflect investors' expectations regarding geopolitical changes and their impact on the U.S. defense industry.