2 Stocks to Buy as The World Enters a New ‘Era of War’

Geopolitical Context - Geopolitical tensions are expected to remain elevated in the near future, influenced by ongoing conflicts such as the Russia-Ukraine war and recent events in the Middle East [2][3][4] Defense Industry Insights - Lockheed Martin (LMT) is identified as a key beneficiary of rising global defense spending, with NATO members committing to invest 5% of their GDP in defense over the next decade [3] - U.S. partners in the Middle East, along with India, the largest arms importer, are increasing their defense budgets, which may lead to higher purchases from U.S. defense companies [4] Stock Performance and Valuation - Lockheed Martin's shares have seen a significant increase since last July, with a current dividend yield of over 2% and a forward price-to-earnings (P/E) multiple of just over 22x, which is above its historical average [5] - The defense sector is experiencing a rerating, suggesting that the valuation premium for defense stocks is likely to persist in the current geopolitical climate [5]