Tensions around the world are rising with notable areas in Eastern Europe and the Middle East becoming war zones.
And there are concerns that those war zones may broaden if other countries become involved. We also have a lot of hawkish rhetoric about Taiwan. Needless to say, the world feels a bit unstable right now.
And what does well when wars are taking place and tensions rising. The Aerospace & Defense Sector.
Today, we highlight a critically important snapshot of time and price for $XAR, the S&P Aerospace and Defense Sector ETF.
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$XAR Aerospace and Defense Sector ETF “weekly” Chart
This is a “weekly” chart looking at approximately 5 years worth of price action.
A picture truly is all that’s necessary here. We can see the rounded base over the past 3 years and currently price is testing its high (again) as global tensions remain elevated. A breakout here would be bullish for defense stocks, but perhaps bearish for peace. Keep an eye on this!
Twitter: @andrewnyquist
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
