ASX defence stocks among winners as funds back rising global military spending

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Governments around the world are ramping up military spending – and fund managers are positioning accordingly.

An increasingly unstable global geopolitical stage has prompted economies to ramp up military spending and investors are rushing to cash in on the trend for a return to war footing.

“Trump’s geopolitical policies could also transform the landscape by raising questions about the United States’ commitment to defending allies in Europe and Asia.”But while some are wagering that the tense macro environment could weigh on global growth, others are identifying the opportunity. “It’s not good for economic growth, but for certain companies it could be quite beneficial over the next decade if we continue going down this path.”“Since the Ukraine war broke out, the demand for Droneshield’s products seem to us to have become part parcel of military spending budgets,” Mr Kidman said.Iron ore price

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