It has become normal for large stocks to be more volatile than we were used to for a long time.
The price changes following news (latest example $RHM (-6.84%) or $HAG (-12.75%) ) seem to me to be the reaction of a lot of investors who are desperate to get in on the latest price explosion. The fact that these are financially solid stocks and not shitholes will probably quickly convince many people to invest.
Of course, institutions also invested in armaments during the war years, but the latest rise was rather untypical. Extreme buying up of the share price after news for an asset in the 100B range speaks for enthusiastic small investors who are not necessarily interested in buy and hold.
The volume and fluctuations will definitely increase, but after such a rise there is also a chance of temporary setbacks until expectations are backed up by figures.
Of course, I wish all investors that the EU will first present a high joint investment program, only for armaments produced in Europe, but it is also possible that a lot will be bought from the USA in order to persuade Trump to cooperate.
The chances of a stock being gambled are high, but with an increase of 200% in one year, a setback of 30% sooner or later is also to be expected.
Europe will certainly generate more sales for Rheinmetall in the medium term, but nobody can guarantee that the valuation will then be right.
Fomo is not worth an investment
Good luck🚀
