Hypersonic Profit Potential in the New $717 Billion Defense Bill

Ever wish making money took... less money?

Wish granted.

U.S. President Donald Trump just "greenlighted" the 2019 National Defense Authorization Act and a top-line military budget of $717 billion... including $616.9 billion for the Pentagon's base budget, $69 billion for overseas contingency operations funding, and $21.9 billion for nuclear weapons.

That's the single largest investment in our military that I can recall. Not surprisingly, it's also a massive investment opportunity that ties in neatly with one of the single most powerful Unstoppable Trends of our time: War, Terrorism, and Ugliness.

We've talked about this extensively over the years, but this is so important that it merits repeating...

  • Lining up your money with defense spending will be one of the single most profitable moves you can make in your investing lifetime.
  • What's more, doing so plays a huge part in the difference between an investment account that makes money like crazy, and one that falls flat. Or even worse, one that goes negative.

Case in point, defense-related companies I've recommended like Harris Corp. (NYSE: HRS) or Raytheon Co. (NYSE: RTN) have led readers in our paid sister services to remarkable profits of 100.81% and 205.19%, respectively... and counting!

The logic is very simple and very compelling...

What Most People Don't Realize About Defense Spending

Defense spending is a foundational element in our world and, therefore, backed by trillions of dollars in spending that will happen no matter what trade wars there are, no matter what happens in Turkey, and no matter whether there's a recession or not.

Worldwide defense spending will hit $2 trillion just two short years from now, according to Deloitte.

Now, I know what you're thinking... there are so many companies out there that buying defense stocks is easy. Not so.

What most people don't realize is that all defense spending isn't the same. And I'm not talking about the dollars involved. I'm talking about where the money is going.

“Federal Rent Checks”: Thanks to an obscure law, over 100 government agencies are required to pay rent. By following a simple investment strategy, you could receive checks of up to $1,795 every month. Read more…

When you understand how to figure out what happens next, your investment results are going to be different than if you simply get on board with everybody else. And, odds are, far better.

Take this budget, for example.

All the usual stuff is there – $7.6 billion for 77 F-35 Joint Strike Fighters (made by Lockheed Martin Corp. (NYSE: LMT) and up 157.1% in the past five years), $85 million for UH-60M Black Hawks (helicopters made by Sikorsky, a Lockheed Martin business unit), full funding for the B-21 Raider (made by Northrup Grumman Corp. (NYSE: NOC), up 209.5% over the past five years), $1.56 billion for three littoral combat ships, a fourth Ford-Class aircraft carrier, $225.3 million for Stryker A1 modernization, 135 M1 Abrams tanks, and more.

But it's the $140 million added to the Missile Defense Agency that catches my attention because it's intended for the development of critical directed energy and space-sensing projects as well as hypersonic defense.

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This is Buck Rogers stuff, and early versions will be ready within the next five years, perhaps ten at most.

In fact, hypersonic weapons could be the single most disruptive battlefield technology since stealth came on the scene. Both China and Russia are spending heavily on it, which means, of course, our military has to develop weapons systems and related technology capable of countering that.

Conventional missiles fly at up to 20 times the speed of sound along very predictable pathways - trajectories in "milspeak." But hypersonic variants may be far faster and far more maneuverable, which means they're harder to shoot down.

There are two approaches at present - hypersonic glide vehicles that separate from a booster and "glide" to their targets at incredible speeds, and "scramjet" engines that compress fast-moving air to boost speed instead of relying on oxidizers to boost propulsion.

The Boeing Co. (NYSE: BA), Raytheon Co. (NYSE: RTN), and Lockheed Martin Corp. (NYSE: LMT) are all working on variants and all remain exceptionally compelling investments, even at this stage of the game and even if you're just putting a toe in the proverbial water when it comes to defense.

However, I've discovered a much smaller company that I think you're going to like even more.

The Small Company That's Taking Advantage of Hypersonic Technology

It's working with Lockheed's "Skunk Works" on a proof-of-concept plane that would fly at Mach 6+ and field an attack or defense anywhere on any continent in less than 60 minutes.

What's more, the company recently provided an important 24-hour turnaround test of the AR-22 Engine that would power a "spaceplane" concept, being fielded by Boeing and DARPA.

And, as if that weren't enough, the company recently delivered the power generator being used in the Mars 2020 Rover and is actively providing the full propulsion system on the Parker Solar Probe project with NASA.

It's also leading in high-performance 3D printing technology and specialty metals production, which gives it a huge "in-house" lead when it comes to the kinds of groundbreaking engineering solutions that will be required for next-generation weapons and defense.

Of course, there will also be commercial spinoffs that add to profit potential. Hypersonic jets, for example, could fly from New York to Tokyo in under three hours without the ear-splitting sonic booms that damage property and people alike.

Shares are up 19.36% year to date, but I believe the real move remains ahead.

In fact, I think the stock could double based on what's happening with hypersonic research.

And it's not just me who thinks so.

My colleague Michael Robinson is a tech expert and one of the few people in the world I'd trust to tell you the story better than I could. So, I'm going to get out of the way and let him do just that... tell you why this small, little-known company may be one of the most profitable defense investments you ever make. Just click here to learn more.

Up Next: The Government’s 33 Years of Mistakes Could Be Costing You $23,441

Mistakes on the part of Social Security Administration employees have led to SEVERELY underpaid benefits for tens of thousands of Americans.

And though the SSA has admitted their wrongdoing, I’m willing to bet they won’t be tracking you down to hand you your money back.

If you’re eligible, and you take action now, you could receive a lump-sum of the money owed to you within five days.

There’s $23,441 at stake – don’t leave that on the table.

The post Hypersonic Profit Potential in the New $717 Billion Defense Bill appeared first on Total Wealth.

About the Author

Keith is a seasoned market analyst and professional trader with more than 37 years of global experience. He is one of very few experts to correctly see both the dot.bomb crisis and the ongoing financial crisis coming ahead of time - and one of even fewer to help millions of investors around the world successfully navigate them both. Forbes hailed him as a "Market Visionary." He is a regular on FOX Business News and Yahoo! Finance, and his observations have been featured in Bloomberg, The Wall Street Journal, WIRED, and MarketWatch. Keith previously led The Money Map Report, Money Map's flagship newsletter, as Chief Investment Strategist, from 20007 to 2020. Keith holds a BS in management and finance from Skidmore College and an MS in international finance (with a focus on Japanese business science) from Chaminade University. He regularly travels the world in search of investment opportunities others don't yet see or understand.

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