How The 2024 Election Could Propel Defense Stocks To New Heights

The race for the White House intensified this week as Donald Trump won the Iowa caucus with 51% of the vote, handily beating rivals Ron DeSantis and Nikki Haley. Results from the online prediction market PredictIt now show that Trump has become the betting favorite to win November’s general election.

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Whether you support the ex-president or not, it’s important for investors to consider the potential market ramifications of a possible second Trump term. One such sector that has come into focus is defense, especially in light of escalating tensions in the Middle East.

Trump Vs. Haley’s Military Strategies

In a note to investors this week, Piper Sandler’s head of U.S. policy research, Andy Laperriere, highlighted defense as a sector to watch should Trump or Haley win in November. In fact, Laperriere gives Haley higher marks than Trump when it comes to boosting defense spending, writing that the former South Carolina governor and United Nations ambassador would be “more focused on winning substantive legislative victories in Congress than Trump.”