A document published on the Kremlin’s website indicated a revised nuclear arms doctrine. This includes the possibility of a nuclear response to aggression by non-nuclear states.
The authorization heightens tensions between Ukraine and Russia. It also increases risks between NATO and Russia. As a result, investors need to watch the energy market and the military sector.
War risks increase the chances of an oil supply disruption. Investors should hold Exxon Mobil (XOM), ConocoPhillips (COP), and Chevron (CVX).
After military stocks dipped to correct from their overvaluation, investors should consider them again. Companies include Lockheed Martin (LMT), Boeing (BA), RTX (RTX), Northrop Grumman (NOC) and General Dynamics (GD).
Watch AeroVironment (AVAV) today. The stock fell after peaking on Nov. 11, 2024, at $235.17. The firm said yesterday that it will buy Blue Halo for $4.1 billion. Shareholders are concerned that the firm overpaid for the acquisition.
BlueHalo develops space technologies and focuses on the electronic warfare market. It generated nearly $886 million in revenue in 2023. However, it estimated revenue for this year will only rise by $15 million from last year’s levels.
Your Takeaway
Readers may only hope that the Kremlin does not use its nuclear warfare. In advance of the ongoing threat to do so, other countries will need to invest more in military hardware.
