The trade war is, by far, the most important topic in financial media nowadays. Investors are panicking as headlines spell a very concerning future. A market crash near? No, on the contrary, says, InvestingHaven’s research team. Not only is this concern one big illusion, but, more importantly, this is a scene created to help … defense companies sell more. That’s why defense stocks will be the winners of this so-called ‘trade war‘.
Who is able to survive these headlines, all on the same day? Good luck with this. It’s the reason why we stopped reading news a long time ago, and we keep on repeating that news is toxic.
And what abour our own headline of today: Trade War Escalates, Investors Are Panicking, Market Crash Underway? How does this sound, reasons to worry? Probably yes, until you read our article in detail, which, visibly, has a misleading subject line (on purpose).
The point is that mainstream media headlines are only meant to shake you out of your positions.
Smart investors ignore these. They focus on the chart(s), and its message(s).
What we see on the chart is two things:
- Global stock markets are set to go higher.
- Defense stocks may be the ultimate winner of this ‘trade war’, aka ‘trade farce’.
Why do we think defense stocks will be the winners? Because it was clear that Mr. Trump was satisfied today after he got commitment that defense budges would rise. Oh, this was a sales pitch for defense companies? Likely yes … so you better buy some defense stocks.
The ITA ETF, representing the largest aerospace and defense stocks in the U.S., has a gorgeous setup. Any coincidence this is one of the best looking subsectors in the U.S. market?