5D·

Armaments investment - yes or no?

Greetings,

I've been thinking about investing more regularly in the defense sector for some time now, my choice here would actually have been $RHM (-6.84%) but everyone should be aware that the share has been flying high recently 😎

Now I'm a bit unsure whether it makes sense to invest at the current price or perhaps even to save regularly 🤔

What do you think? Would it be better to keep your feet still for a while or go straight in with an uncritical amount? Do you have any other stocks from the defense sector that you can recommend more at the moment than $RHM (-6.84%) ?

I'm looking forward to your answers again! Thank you 😄

6 Comments

McZed@McZed

I see it a little differently than the commentators above me:

The EU and nation states such as DE are discussing lifting their debt rules for a reason. Massive investments will have to be made in armaments, as the EU will no longer be able to rely on the US as a partner, as we have seen this week. I think a push in equities when the news comes that the debt brakes are history is currently more likely than a correction.

If countries are talking about increasing military spending to 3-5% of their GDP, that is almost double the status quo and the end of the line is far from being reached.

This would still be the case even if the war in Ukraine were to end tomorrow. Armaments are needed to secure peace in Ukraine, armaments are needed to deter Russia and armaments are needed to achieve independence from the USA.

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ya301kr@ya301kr

I personally have been invested in Rheinmetall for years, but at the moment I am considering whether to close the position and take profits and wait for a correction, because I think that it is currently a very big hype, which could fall into a proper correction with every small negative headline.

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NiMe@NiMe

Armaments are too late now. What comes after the war? Rebuilding the infrastructure, for which you need loans. So energy companies, construction companies and banks might be useful here. World trade will again take place between East and West, i.e. transportation companies, shipping companies, etc. The fields in Ukraine need to be cleared, possibly by an engineering firm (Arcadis or similar), but I don't know who will do it. Mining through lithium mining (Trump deal). The huge fields are cultivated again: Seed, fertilizer (nutria), John Deere equipment. Car suppliers can find cheap employees or plants in Ukraine: VW?

Be creative. Armaments are through! Or do you see new potential for conflict where Europeans would have to buy from Reihnmetall? I don't.

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Peace@Pinkafeld

I have been invested in Rheinmetall for 2 years. I will take the partial profit at € 1250. I would not invest at this level and would definitely not save. Only after the correction (in the €700 range). Lockheed Martin is not doing so well

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Jay@JayRal

I'm also in at $RHM, thinking about when to close the position and take the profits. Taking profits generally does no harm.
Otherwise, as far as armaments are concerned $HAG, $R3NK $BA.
Everything is currently hyped due to the political situation. Of course, this is not investment advice and I also think the shares are overvalued, unfortunately we don't all have a crystal ball. The defense sector is "still" doing very well in my portfolio. The whole thing is quite volatile, which is not usually the case with equities to this extent - it feels a bit like crypto 😅

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Andreas M.@thor88

Is much too high -> No.

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