A rogue nation and its cartoonish, unpredictable leader fire two ballistic missiles towards its rival neighbor, a vital American ally. Then the nation claims to have detonated its most powerful atomic bomb ever, which it says will fit nicely on a warhead fitted to those ballistic missiles.
A strongman in charge of a world power decides to invade a sovereign country to "reunite" half its territory with the mother country - twice, and both times during the Olympic Games.
Unfortunately, as we all know, these events weren't lifted from the plot of a spy novel.
They're actually happening in the world today. Border wars, frozen conflicts, and saber rattling in the South China Sea, Ukraine, the Russian Caucasus, the Korean peninsula, Syria, Iraq, Yemen, and Saudi Arabia don't show any signs of letting up.
A global economy lurching toward recession, bad planning, and poor leadership across the globe don't help international tensions, either.
But this is precisely the kind of environment lucrative defense stocks thrive in.
In fact, nervous nations with deep pockets are propelling the entire defense sector into a "supercycle" that could be good for steady gains for the next 20 years.
And it doesn't matter who wins in November, either...
Tags:Stocks
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