Defense Stocks on Pace to Outperform S&P

[Robbien]

Source: Motley Fool

Growth in defense stocks is on pace to surpass the S&P 500 Index in 2007 for an eight consecutive year, according to market research released Wednesday.

The Defense Spade Index's has a year-to-date gain of 21.5 percent, or nearly 20 percent better than the widely followed S&P 500 broad-market index.

The defense and homeland-security benchmark has outperformed the S&P 500 by more than 10 percent in six of the past eight yearly periods and gained more than 19 percent in four of the previous five years.

"Although much of the gains can be attributed to government spending in the aftermath of 9/11 and the war in Iraq, the defense sector's positive performance predates the 9/11 attack on the U.S., and trends suggest that growth may continue even after a pullback from Iraq occurs," said Scott Sacknoff, president of the Defense Spade index.

Read more: http://www.fool.com/news/associated-press/2007/12/19/defense-stocks-on-pace-to-outperform-sp.aspx

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The article states the Defense Industry isn't really worried about which party is in power. It feels it will do just as well with either one.

[sinkingfeeling]

1. 'Defense industry' is a misnomer! They're sucking the blood out of this country and the world.

[AndyTiedye]

3. Since the US Attacks First Now, They Are the OFFENSE Industry

[Jim__]

2. Surprise, surprise! - n/t

[Tandalayo_Scheisskopf]

4. It's a great way...

To prop up indexes and the GDP. Strip out the defense stocks and you have an entirely less-healthy economy.

[joeglow3]

5. Not a big shock

Wars have ALWAYS benefited the economy. This will always happen when you take money from the government and throw it at companies owned by citizens.

[KamaAina]

6. I was not aware that DUH! Magazine had a business section

Next week's exclusive: Pharmaceutical stocks outpace S&P!