1Mon·

Short-term opportunities in the US defense sector/?

Hello dear getquin community, I have 2400€ free again and have thought about 1400€ $LMT (+1.18%) Lockheed Martin and the rest in Defense Tech $SHLD ETF. How would you take advantage of the current situation? Looking forward to your feedback

7 Comments

Gomerdoc@Gomerdoc

1Mon

I think defense is a good choice at the moment. However, instead of $SHLD, I would basically achieve the same performance by splitting it into a US-based defense ETF $DFEN and $EUDF.

If you put these three funds next to each other in the benchmark, they perform almost identically: the advantage of splitting 50:50 between the last two is, in my view, that it is not entirely clear at the moment which way the military would prefer to buy.
So if the US or euro sector performs significantly better than the other, you can weight or overweight the split funds more easily.
The global form always has everything in it, but doesn't perform any better than this 50:50 split. But these are probably just nuances 🙄🤷‍♂️

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Global Finance@Global_Finance

1Mon

Thank you very much, I have looked at both ETFs and have decided to hold a portion for the time being to see. Lockheed Martin is attractive to me right now and will be an attractive investment in my opinion.

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Global Finance@Global_Finance

1Mon

@Gomerdoc there is no such thing as too late :) The rise has only just begun, with the trade deal between Trump and Von der Leyen, U.S. defense stocks will rise sharply. I am sure that the defense sector will benefit from this, the question is rather which company will benefit the most.

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Gomerdoc@Gomerdoc

1Mon

@Global_Finance I agree, it's not too late! But I didn't say that either, it was someone else above 😉
I would also stay invested in the two funds I mentioned, for example, or continue to add to them. Individual shares are also possible, of course, but none of them are really suitable on their own according to my quality criteria, or at least perhaps difficult in the long term. I don't understand the business.

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Kai@Dividenden-Sammler

1Mon

I bought more last week at €354 - the savings plan is still running - although I have also increased the monthly installment.

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David@DerUnwissende

1Mon

I think the defense industry is already well and expensively valued as a lot is already priced in. The question here is whether there will really be much movement in the short term. It is more likely to be better in the long term because we are back in a decade where the stronger has the power.

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Konstantin@Konstantin85

1Mon

@DerUnwissende Which one? The European yes, the American no.

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