Archive Category: Moneyball's Capitol Gains Trader Archive

AI spending is the talk of Wall Street right now … but there’s another $3 trillion spending super cycle underway that investors are completely overlooking… Because the flow of money in the defense industry is rapidly shifting away from the “usual suspects” like Lockheed Martin (LMT) and RTX, formerly Ratheyon (RTX) . Militaries are turning away from some of the huge, expensive platforms that dominated the last generation and putting more money into drones, AI-driven systems and newer defensive technologies.

Hello, and welcome to Capitol Gains Trader… We’ve got quite a few new subscribers joining us this week, and I’d like to start by welcoming you all aboard! My digital door is always open, so to speak, so feel free to email CapitolGains@MoneyandMarkets.com at any time with any questions or feedback you might have. And I’m serious about that. If there’s ever anything you think we could be doing better, or doing more of, just drop a line and we’ll make it happen.

You’ve probably already heard the media narrative by now… “US missile stockpiles are running low,” or “the U.S. Military has depleted half its stockpiles of its most expensive munitions in Iran War,” (that last one comes word for word from a recent headline in Fortune). Based on the simple laws of supply and demand, one might assume this is a massive opportunity for big defense stocks. But companies like Lockheed Martin (LMT) and RTX, formerly Raytheon, (RTX), are currently underperforming the market.

Things are quiet in D.C. this week… The Senate’s still on recess and won’t be back until next Monday. Meanwhile, the House has canceled its last two weeks in session — wrapping up business early to give its members extra time to campaign ahead of the midterm elections.

The world is at war. Russia’s invasion of Ukraine is now over four-and-a-half years old. Israel’s conflict in Gaza has been ongoing for nearly three years. Even our conflict with Iran has gone on much longer than the “four to five weeks” initially expected. Like it or not, these conflicts are here to stay.