Many people ask why.
I am happy to provide a brief analysis of some of my observations that I believe make this sector worthy of consideration. Over the past decade, in an effort to balance the budget, Congress has responded to public opinion and reduced defense spending. Many of these companies have posted successive quarters of disappointing earnings, which finally necessitated large layoffs. The senior executives of these companies have been forced to fight the battle of economic survival with one hand tied behind their backs, so to speak. For the first time in 13 years, there appears to be an uptick in U.S. defense spending.