The Doomsday Clock is 90 seconds from midnight…
Going back to its creation in 1947, we’ve never been this close to Armageddon.
The Doomsday Clock came from many of the same scientists who created the first atomic bomb. They wanted to show the world how close we were to destroying ourselves.
The scientists chose a clock ticking toward midnight to express urgency. Unless someone stopped it, disaster would occur.
The Doomsday Clock started seven minutes away from midnight. It has gone forward 17 times and backward eight times. In 1991, it was as far as 17 minutes away from midnight.
But the clock has gotten a lot closer to midnight in recent years…
In 2018, it went to two minutes away. It hadn’t been that close since the U.S. and Soviet Union were testing hydrogen bombs in 1953.
The clock moved to 100 seconds away in January 2020. And that was before the peak of the COVID-19 pandemic, Russia’s invasion of Ukraine, and escalating tensions in the Middle East.
Fortunately, the Doomsday Clock is only a measure of vulnerability. No one really knows how close we are to destroying ourselves.
Of course, we don’t need the Doomsday Clock to know the world is more dangerous than ever. And whether we like it or not, that idea creates opportunities for some companies.
So before you head for your bunker, let’s take a closer look…
Put simply, U.S. defense spending has grown steadily for many decades. Take a look…
It’s not just the U.S., either…
Global military spending rose 7% year over year to $2.4 trillion in 2023. That’s the biggest year-over-year increase since 2009. And it’s a new record high.
When you look around, it’s easy to see why…
For starters, 28 conflicts directly threaten U.S. interests around the world today. At least one is happening on every continent except Australia and Antarctica.
Ten countries are in a state of what policy experts call “extreme conflict.”
Across the globe, anxiety is high…
The Halifax International Security Forum polls people in 30 countries about world conflicts each year. And the latest results from last November show that folks are worried…
Nearly 85% of the respondents said the world got more dangerous over the previous year. And 71% fear the threat of a biological, chemical, or nuclear attack.
Beyond that, 70% of respondents expect to see another world war within the next 25 years. And only 44% are confident in their government’s ability to respond to an attack.
So if you’re worried, you’re not alone. And as investors, we should take notice.
That’s why I’m keeping my eye on the SPDR S&P Aerospace & Defense Fund (XAR)…
This exchange-traded fund allows folks to buy shares of 32 companies all at once. Its top 10 holdings include defense contractors Lockheed Martin (LMT) and Northrop Grumman (NOC).
Even better, the Power Gauge is flashing opportunity in this space today…
XAR currently gets a “very bullish” rating in our system. And the Power Bar ratio shows that it has a lot more “bullish” or better holdings than “bearish” or worse ones. Take a look…
You might’ve heard this old saying before…
An ounce of prevention is worth a pound of cure.
The Doomsday Clock is ticking closer to midnight. That’s making a lot of folks nervous.
As investors, it’s wise to look at the companies that could prevent that from happening.
The Power Gauge agrees. It points to a “very bullish” opportunity in XAR today.
Good investing,
Joe Austin
