Load Up for a War With Iran

By the time you read this, the United States may already be at war. 

Not with Russia or China but with Iran. 

I held off writing about global conflict escalation last week because, to be frank, I’ve been talking about this for a while. 

I also didn’t want to jump the gun, so to speak. 

I wanted to give peace a chance. I wanted to leave the door open for diplomats to do their work and hope that cooler heads would prevail.

But given the information I received today, that seems terribly unlikely.

Iran is about to jump headlong into a war with Israel.

Again, is something I’ve long been expecting. The whole Middle East has been teetering on the brink ever since Hamas launched an unforgivable terrorist attack on Israel last October.

Obviously, retaliation for that attack was completely warranted. However, it’s also gone way overboard. 

Israel has relentlessly targeted schools, hospitals, and residential neighborhoods with air strikes. They’ve killed scores of doctors, aid workers, and journalists. And they’ve forced the entire Palestinian population into squalor where they’re dying of disease and famine. 

The IDF has also pushed the limits with strikes in Lebanon and Syria, where they targeted Iran’s consulate.

Don’t get me wrong, Iran’s proxy groups in the region have done their own part to escalate the conflict. They’ve been harassing ships in the Red Sea and assailing Israeli and American targets with rockets and drones.

However, Iran itself resisted taking a direct role in the fighting — up until the IDF assassinated the leader of Hamas in Tehran last week. That was the final straw. 

Now there’s no going back.

Iran has issued a warning to pilots and aviation authorities to avoid its airspace as it prepares a response of its own. 

U.S. Secretary of State Antony Blinken warned the G7 group of nations that that response was likely to come in 24–48 hours. And that was on Sunday. 

We’ve already dispatched an additional fighter squadron, warships, and a carrier group to the region.  And President Biden and his national security team are huddled in the situation room exploring potential threats and responses as I write this.

So it looks like this is it. 

Best-case scenario, we have an incident like we did in April when Iran fired more than 300 drones and missiles at Israel and almost all of them were intercepted.

However, that attack was more about showing force and saving face. Iran even telegraphed it ahead of time to give Israel and the U.S. a chance to prepare. 

Iran is providing no such warning this time around. The attack is also expected to be much larger in scale and potentially coordinated with proxy groups throughout the region.

We’ll just have to see what the result is. But when it comes to investing and protecting your money, there’s still time to act.

Obviously, defense contractors like Lockheed Martin (NYSE: LMT), Northrop Grumman (NYSE: NOC), General Dynamics (NYSE: GD), and RTX Corp. (NYSE: RTX) are the way to go. 

These companies are already benefiting from the war in Ukraine and sky-high defense budgets in the United States and Europe. 

In fact, Lockheed Martin released a blockbuster earnings report just last week. The company reported adjusted EPS of $7.11, beating estimates by $0.66, while revenue came in at $18.1 billion, roughly $1.1 billion higher than expected.

RTX did the same. It reported second-quarter revenue of $19.7 billion, up from $18.3 billion a year ago and topping analyst estimates of $19.2 billion. EPS hit $1.41, beating analyst estimates of $1.30.

Its stock hit a new 52-week high as a result. 

Beyond that, I cover all things defense at my Secret Stock Files investment service. That means more of a focus on small and mid-sized companies that supply defense majors with cutting-edge components and systems.

You can find out more about that here.

Just don’t say I didn’t warn you.

Fight on,

Jason Simpkins

Simpkins is the founder and editor of Secret Stock Files, an investment service that focuses on companies with assets — tangible resources and products that can hold and appreciate in value. He covers mining companies, energy companies, defense contractors, dividend payers, commodities, staples, legacies and more…

In 2023 he joined The Wealth Advisory team as a defense market analyst where he reviews and recommends new military and government opportunities that come across his radar, especially those that spin-off healthy, growing income streams. For more on Jason, check out his editor’s page.

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