Russia Ranks Second in Global Arms Sales

Russia has overtaken the UK to become the world’s 2nd largest weapons seller based on 2017 data according to a report by The Stockholm International Peace Research Institute (SIPRI). At number one, the US remains the undisputed king in weapons sales with sales of over $222.6 billion.

The following graphic shows additional details on global arms sales:

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Source: Graphic News

Below is another graphic showing the destinations for Russian weapons:

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Source: RFE/RL

The US firms listed in the top 15 include:

  • Lockheed Martin Corporation (LMT)
  • Boeing Co (BA)
  • Raytheon Company (RTN)
  • Northrop Grumman Corporation (NOC)
  • General Dynamics Corporation (GD)
  • United Technologies Corporation (UTX)
  • Level 3 Communications, Inc (LVLT)

Among the top European companies in the ranking are: 

  • BAE Systems PLC (BAESY)
  • Airbus Group SE (EADSY)

Defense sector stocks are like consumer staples in some ways. A defense firm’s products are required during good and bad economic periods. Defense stocks tend to offer steady long-term growth with wars, fears of wars or terrorism boosting defense budgets leading to more growth for the industry.

Disclosure: No positions

Germany CDAX Index Performance From 1930 To 1950

The German equity market soared from 1931 and continued to rise when Hitler started the Blitzkrieg. The market was closed in Aug, 1944 and remained closed until mid 1948. When it opened it took a straight plunge.

The following chart shows the performance of the CDAX Index from 1930 to 1950:

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Source: Stock Markets during the second World War, Investment Office

Excerpts from the book Wealth, War & Wisdom, 2008-Barton Biggs:

“In late 1939, however, well ahead of the Blitzkrieg stock prices began to anticipate the overwhelming victories of 1940.”

“By 1940 and throughout 1941 the German economy was booming from military production. (…) The interesting insight is that by the late fall of 1941, the Berlin market was somehow sensing that Hitler’s luck, his infallibility were fading and that Germany’s military momentum had crested. (…) Did anyone know the tide had turned except the stock market? Certainly a few of the generals suspected.”