Rising defense budgets make this ETF the best cheap defense play.
Aerospace & Defense Invesco ETF
On Tuesday (May 22), West Texas Intermediate crude futures hit $72.72 a barrel, their highest level since 2014.
This is just the latest benchmark in a nine-month rally that has seen oil prices soar over 50% since August 2017.
Oil's aggressive rally has pushed oil stocks up as well.
SPDR S&P Oil & Gas Exploration & Production ETF, an ETF comprised of oil stocks, has gone up 48% since last August.
For comparison, the S&P 500 has only gained 13% over the same period.
With stocks riding increasing oil prices to new market highs, we've identified the best oil stock to buy as the rally continues.
The stock market spoiled investors last year with low volatility and outsized returns. In 2017, the Dow Jones climbed nearly 27% while the CBOE Volatility Index (VIX) fell more than 34%.
Unfortunately, that trend has ended. Since peaking in January, the Dow has slipped 10%, while volatility has skyrocketed. The VIX is up almost 100% in 2018 alone.
That kind of volatility breeds fear in many retail investors. But it can also create a massive profit opportunity for those who know where to look.
There's talk of a preemptive U.S. military strike on North Korea.
About which Beijing has accused Washington of maintaining a "Cold War mentality."
North Korea's ongoing posturing and threatening has been good for China this year.
And there's no reason why Beijing would realistically want to put a stop to it.
The Trump White House is taking a page right out of President Reagan's playbook. When Reagan took office in January 1981, he sought to rebuild a military depleted by years of war and tough congressional budgets.
Trump took office last January after campaigning on a defense buildup from a budget of around $580 billion. He said he wanted to beef up the military after prolonged battles in the Middle East and annual defense budget fights on Capitol Hill that limited weapons spending.
That's why Trump called for a fiscal 2018 defense budget that is 10% larger than the year before, making it the biggest increase since the Reagan years.
Make no mistake, this gives us a "target-rich" opportunity for the new year. After all, Trump wants more airplanes, tanks, and troops, as well as technology for missile defense and a wide range of other platforms.
The defense sector has been on a tear this year due to the rise in terrorist attacks across the globe.
That's why we're bringing you one of the best defense stocks to buy today.