Defense business: why financial investment is a necessity

National security and defense are important. In fact, they are more than important, they are an integral part of modern life. Every country needs an active, well-trained and well-funded army. From land to sea, a strong front line against potentially unwanted visitors is crucial. Training soldiers is an important part of building an effective defense system. However, boots on the pitch, especially in today’s world, is only half the battle. Technology, infrastructure and supplies all need to be covered. That being so, one cannot escape the necessity and influence of money in the defense sector.

There is money in security and defense

Indeed, one need only look at the amount of money African countries spend on defense to see that this is an important part of the military process. Of all the largest nations in Africa, Algeria spends the most on defense. His 13.9 billion annual costs are almost $ 4 billion more than Egypt ($ 10 billion). Where there is money, there are opportunities for innovation and investment. The weapons and supplies used by the African armed forces must be made and supplied by someone. For those with good business acumen, this is an opportunity.

Picture: Pixabay

From fighter aircraft technology produced by Lockheed Martin and Boeing, ships of General Dynamics and computer systems of Leidos Holdings, many companies are invested in defense. In turn, those who wish to trade stocks can invest in defense. The advent of e-commerce has made it possible for almost everyone to buy and sell CFD shares in defense companies. In fact, what is interesting about CFD stocks is that traders can be long or short. Since CFDs do not require you to buy the underlying asset (i.e. the stock), you can speculate on the price rising (going long) or falling (going short), which is useful in the defense sector because it is never static.

Defense requires ebb and flow

Armies and navies do not constantly fight. Yes, national security is a 24/7 operation. However, there will be periods of heightened activity and periods of relative peace. The value of defense stocks will fluctuate with these changes. Indeed, like any other business market, defense stocks fluctuate according to supply and demand. Of course, from a humanistic point of view, there is a desire to keep demand at a level that avoids disastrous consequences. However, it is an inevitable fact of life that conflicts arise.


Picture: Pixabay

Moreover, it is a fact that defense is an integral part of the well-being of every African country. This means that investments are needed. People may not like to think of war as a business, but in some ways it is. Being able to trade stocks in defense companies like Lockheed Martin is proof of that. Most importantly, we see African countries spending a large part of their GDP on defense. National security is business, and for many it is worth being in defense. When it comes to this, spending on security is a worthwhile investment because you are investing in preserving security and ultimately life.

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