With President-elect Donald Trump set to assume office in January, the U.S. military and cybersecurity sectors could experience sweeping changes, creating opportunities for investors who recognize the long-term growth potential in defense and technology.
Meanwhile, cyber threats have reached an all-time high, requiring unprecedented investment in cybersecurity infrastructure. For investors, these trends highlight two critical sectors poised for growth: traditional defense and the emerging field of cyber defense.In 2023, U.S. military expenditure reached $916 billion, representing a staggering 40% of global military spending. As I shared with you earlier in the year, that’s more than the next 10 countries combined.
The Congressional Budget Office projects that military spending will increase 10% between 2028 and 2038, adjusted for inflation. But Republicans could accelerate this timeline, with bold initiatives like the proposed Iron Dome-style missile defense system.The potential for increased defense budgets isn’t limited to the U.S. NATO allies, under renewed pressure from an incoming Trump administration, are likely to ramp up their own spending.
These adversaries are no longer content with merely breaching corporate networks. They target critical infrastructure, telecommunications and even political figures. A recent campaign by Chinese state-sponsored hackers infiltrated the phones of Trump, Vice President-elect JD Vance and Vice President Kamala Harris, underscoring the growing national security implications of these attacks.