Trump versus Harris: What the November election means for defense stocks

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Rising geopolitical tensions could be a catalyst for defense stocks, with a few caveats including the U.S. election.

With polling continuing to show a very close U.S. presidential race , investors looking to hedge their bets may want to consider the defense sector. While defense stocks have slightly underperformed the broader market in 2024, the industry's outlook is unlikely to hinge on which candidate becomes the commander in chief. Instead, the makeup of Congress could matter more, especially if investors perceive lawmakers will be more willing to boost the Department of Defense's budget.

"Because of our support, because of the air defense, the ammunition, the artillery, the javelins, the Abrams tanks that we have provided, Ukraine stands as an independent and free country," Harris said in the September presidential debate , where she reiterated her support. Roughly $33 billion in presidential drawdown authority money has been sent to Ukraine since Russia's invasion in 2021, per Morgan Stanley. These funds represent the U.S.

 

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