War is ubiquitous right now. Whether you look at Ukraine, Iran, the Gulf, Pakistan, or not so long ago Venezuela. And that’s despite Trump’s claims that he supposedly ended eight wars since he came into office. While nobody knows which wars he ended, most people definitely know which he has begun. And that’s not to critique the engagement in Iran or Venezuela. Trying to overthrow evil dictators is not an inherently bad cause, however the method might be more than questionable.

At this point, the standoff between Trump and whoever is in charge of Iran seems more like two kids fighting in the playground over who opens the Strait of Hormuz first and finally gives the Gulf nations some breathing space again.

But one thing is undoubtedly clear in all this. The defence sector is booming everywhere. In Europe, the US and Asia, countries are rearming themselves, for very different reasons. Europe because the American security guarantee is no longer completely reliable, with NATO seemingly in question. Asia because China continues to expand its dominance and push to become the leading world power. And the US because it still wants to play “World Police,” even if that might not be the most popular approach domestically anymore. But I guess we’ll find that out in the midterms.

Considering all of this, nobody can doubt the importance of defence companies, and their backlogs are as full as you would expect. The poster child of European rearmament is Rheinmetall, growing at unprecedented rates with order books stretching years into the future. And that is definitely reflected in the stock price. Since the start of the Ukraine War five years ago, the stock has risen by more than 2,200%. Yes, that’s right, if you invested $10k then, they would be worth $220k now.

But we all know that Europe’s defence industry has been historically underfunded, so it’s no surprise that it eventually caught up. What about the US then?

The sector is doing well, as always, but the stock performance hasn’t been as extraordinary. Around 110% over the last five years for the SPDR U.S. Aerospace & Defense ETF is solid, but not exactly record-breaking. So is now the time to invest? After all, Trump did announce a massive hike in the defence budget from currently $901 billion to more than $1.5 trillion.

Whether that actually goes through is a different question, considering the already massive national debt and Trump’s midterm concerns. But we also know he can take a different approach.

Just a few months ago, the President floated the idea of a pay cap for defence executives and even proposed restricting share buybacks and dividends. Our wonderful “businessman” of a president wants to cut incentives for both management and investors. How encouraging.

So ultimately, whether you should invest in defence right now is a matter of opinion. Personally, I think the European sector is overbought, but demand is clearly there, so I wouldn’t be too worried about holding names like Rheinmetall or others. For the US, it seems the market doesn’t fully believe in the trillion-dollar budget, given current valuations and revenue expectations of the major players.

But again, it’s still one of those sectors where you probably can’t go too wrong, and there is definitely still some upside left.

$ITA (+3,66%)
$LMT (+0,44%)
$GD (-0,79%)
$NOC (-0,13%)
$RTX (+2,11%)
$LHX (-0,06%)
$BA (+2,09%)
$AIR (+5,55%)
$RHM (-0,08%)

The escalating tensions between the USA and Iran have sent ripples through global markets. In times of geopolitical conflict, "Defense" isn't just a sector—it’s often a flight to quality. While traditional aerospace giants focus on the battlefield, a new era of personal security and domestic stability is emerging, making companies like Byrna Technologies (BYRN)more relevant than ever. [1, 3]

The Wartime Investment Thesis:

• Heightened Vigilance: Conflict abroad often leads to increased concern for safety at home. Demand for protection spikes as civilians and security firms prioritize readiness. [1, 2]
• Budget Realignment: Defense spending becomes a non-negotiable priority for governments and individuals alike, providing a "moat" against broader economic downturns. [3]
• The Shift to Modern Solutions: Modern defense is moving toward high-tech, precise, and non-lethal options that fit into everyday life. [4, 5]

🚀 High-Conviction Pick: $BYRN

While the market watches the "Big Defense" contractors, Byrna Technologies is the hidden gem in the non-lethal self-defense space. Here is why BYRN is a strategic addition to a portfolio today:

The Narrative for Growth:

• Redefining Self-Defense: Byrna provides a bridge between high-security needs and everyday accessibility. Their CO2-powered launchers offer a powerful deterrent without the legal and ethical complexities of traditional firearms—a niche that is exploding in popularity during times of social and global unrest. [5, 6]
• Mass Market Expansion: With new leadership and a shift toward aggressive celebrity endorsements and retail expansion, Byrna is moving from a "niche hobbyist" brand to a household name in security. [7, 8]
• The Opportunity Gap: Despite strong fundamentals and growing revenue, the stock has recently traded at levels that don't seem to reflect its long-term disruption potential. This "disconnect" between price and utility is where the biggest gains are often found. [6, 9]

📋 Top Defense Stocks to Watch in 2026

For a diversified approach to the current crisis, consider these leaders:

Lockheed Martin ($LMT (+0,44%)
): The cornerstone of US air superiority; their order books are at record highs. [10, 11]

Northrop Grumman ($NOC (-0,13%)
): Essential for stealth technology and space-based defense systems. [12, 13]

RTX Corporation ($RTX (+2,11%)
RTX): The leader in missile defense systems (like the Patriot), which are critical in Middle Eastern theaters. [14]

Palantir Technologies ($PLTR (-1,74%)
PLTR): The AI "brain" behind modern warfare, helping military intelligence make sense of complex battlefields. [1, 15]

Rheinmetall ($RHM (-0,08%)
RHM): Europe's powerhouse for ammunition and land systems, benefiting from the massive rearmament of NATO. [13, 16]

The Verdict: If you are looking for a play that combines geopolitical resilience with disruptive consumer tech, Byrna (BYRN) is my strongest recommendation. It isn't just a defense stock; it's a "peace of mind" stock in an increasingly volatile world.

#Investing
#DefenseStocks
#Geopolitics
#growth