The world is facing a global recession that will affect nearly every industry. Investors are scrambling to find stocks that are stable. One such option are arms companies such as Lockheed Martin, General Dynamics, and Raytheon. This industry generates almost 700 billion USD per year, the equivalent of a sixth of the federal budget. It is unlikely the arms trade will decline during the upcoming recession because there is primarily only one customer-the US government. The government will continue to buy arms no matter what in order to maintain the military. Even if demand does decrease, it would not be a noticeable dip. Currently stocks have fallen, but much, much less than other companies such as Boeing. Companies will still continue to sell abroad although it is likely countries will try to purchase from their own domestic arms industry when possible in order to boost their economies.
The most pressing issue for investors is the ethics of the industry. Unlike other industries, the arms trade is actively engaged in weapons and killing. For many potential investors, this may be a moral quandary with which they are unable to reconcile. This also is not necessarily an opportunity for the common consumer; it is limited mainly to those who have access to hedge funds.
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