Global geopolitical tensions are on the rise and aware investors are positioning their portfolios with an allocation to defense stocks. An increase in global defense spending often translates to higher demand for defense products and services, potentially leading to increased revenues and profits for defense companies. This heightened demand can bolster investor confidence in defense stocks, driving their prices upward and enhancing portfolio returns. Additionally, as governments prioritize national security, defense firms may benefit from stable, long-term contracts, providing a steady revenue stream for investors.
