Shares of weapons production companies, such as Lockheed Martin and General Dynamics, have decreased by more than 20%over the past six months, which has become an important signal for financial markets. These changes show that investors have begun to bet on the rapid end of the war between Russia and Ukraine, believing that the US may face overproduction problems if Ukraine's supply is stopped.
According to experts, the stock market is closely linked to global political and military events, and therefore the fall in the value of the shares of large arms suppliers signals the expectations of the end of the war. If this forecast is true, US weapons manufacturers can face problems by reducing demand for their products.
In recent years, shares of companies such as Lockheed Martin, General Dynamics and Boeing have been significantly due to the fact that investors have begun to doubt the long -term military conflict in Ukraine. After the election of Donald Trump, the President of the United States, traders began to question the need to continue supplies of weapons to Ukraine, which led to a fall in the value of the stock companies of the MIC.
Not all military conflicts are equally reflected in the financial markets. For example, Raytheon's stocks that specialize in defense systems for Israel, on the contrary, show sustainable growth. This can be the result of investors' expectations for the continuation of Israel's military assistance from the United States and a possible increase in military supply to this country due to instability in the region.
For weapons manufacturers, such as Lockheed Martin and General Dynamics, the rapid end of the war can lead to problems with overproduction and fall in demand. At the same time, companies that supply Israel's weapons as Raytheon can benefit from further deliveries and military support in the region.
