Investors are piling into defensive investments as tensions over Taiwan heat up…
Last week, House Speaker Nancy Pelosi (D-CA) traveled to Taiwan, marking the most notable visit of a U.S. official to the country in twenty-five years.
The self-governing, democratic island welcomed Pelosi with open arms, as the House Speaker noted the U.S. would stand with the country amid China’s efforts to claim Taiwan as its own.
However, the trip also amplified tensions between the U.S. and China…
Immediately after her visit, Beijing held live-fire naval exercises for four days – launching missiles in the island's direction as a show of force.
And, since then, Taiwanese officials have said China has sent over 50 warships and 200 military aircraft into the region to posture even further.
Some analysts suggest this is par for the course with Beijing. Prior to this development, China has grown increasingly aggressive with its actions toward neighboring countries such as Japan and India.
On the other hand, some experts believe this is a sign that things may soon worsen, as U.S. allies such as Japan and Australia have only solidified their stances that the Chinese navy poses a major threat to the Pacific.
These factors, combined with Russia’s continued war in Ukraine, have further stoked geopolitical tensions worldwide – amplifying global uncertainty for money managers and consumers alike.
But these events have also helped clarify where investors should place their money in the current market. This includes dividend-yielding defense stocks such as Raytheon Technologies (RTX).
The defense contractor offers a dividend yield of 2.36% with a market capitalization of $138 billion. It’s also among the top defense businesses in the world behind Lockheed Martin (LMT) – reporting $41.9 billion in revenue in 2021.
This is due to the demand for Raytheon’s modern military equipment in the aerospace, intelligence, space, and missile-defense markets.
Within these segments, it sells technologies such as navigation, reconnaissance, and landing systems. They also involve cybersecurity, missile warning and defense systems, and hypersonic weapons.
This indicates that Raytheon is more than diversified enough to benefit in both times of peace and war, as it receives billions of dollars in government contractors on an annual basis.
And with tensions between the U.S., its allies, China, and Russia continuing to rise, analysts forecast the company will benefit from strong orders and backlogs moving forward – making it a safe play for investors looking for passive income.
Behind the Markets
China just tested a hypersonic missile that can carry a nuke around the world.
The Financial Times reports it “could deliver a nuclear weapon that evades US missile defenses.”
The US Ambassador said “We just don't know how we can defend against that technology.”
The Joint Chiefs of Staff said it was “very close to a Sputnik Moment.”
The good news is… Trump predicted this!
And began working with a small laser company that's working to shoot down these missiles.
PS: Hurry, you need to get this before August 21st (Sunday), because the soonest China will attack Taiwan.
The stock market will crash at least 35% when China makes their move.
Here are the 3 steps you can take to protect your retirement.