Do you remember the last time the world was as crazy as it is right now?
Russia invading Ukraine, the ongoing pandemic, inexplicable storms… where does it end?
Or is this the new normal?
Either way, you need to protect your money and uncover the cash that’s been hiding from you!
Here’s how…
Out of all the chaos going on at the moment, the war breaking out in Ukraine against Russia is the one that’s dominating the headlines.
It may feel half a world away, but it’s hitting closer to home than you might think.
While everybody has their eyes glued to the news, watching videos of fighter jets and explosions, I encourage you to take a break and have a look at your money (and the places where money might be hiding from you)!
It’s easy to get caught up in the chaos. And the feelings of devastation for all those affected are completely justified.
But it’s not heartless to take a second to think about you.
And that’s why we need to make some moves to not only protect the money we have, but to make sure we’re getting the best out of it.
Our focus today is on US defense stocks.
The USA doesn’t have to be involved in a war for there to be action with its defense stocks.
Whenever the thought of war appears, these stocks start to soar.
It could be down to investment in defense on a “just in case” basis, but it could also be that as humans we’re very literal.
We see the word WAR and we pile our money into defense stocks.
Either way, the defense stocks soar. The reason doesn’t matter.
One of my all-time favorite defense plays to hop in and out of is Raytheon Technologies (RTX).
In the two days after the initial Russian invasion into Ukraine, RTX shot up 7%. That’s a big sum for these large cap stocks.
You don’t normally see them moving that much over a 2-day period.
But when WAR hits the headlines, profits soar.
Another great defense play is the Direxion Daily Aerospace & Defense Bull 3X ETF (DFEN).
This one is a little choppier than RTX as it follows a basket of defense stocks at a 3x leverage.
But in that same 2-day period RTX jumped 7%, DFEN skyrocketed 18%!
The fallout in DFEN will happen much sharper, so you’ll have to time your exit from this one perfectly, but it just goes to show the sensitivity of these stocks when war breaks out.
Our thoughts go out to all those suffering during these times, but you also have to set some time aside to look out for yourself.
Afterall, your money is your livelihood.
