Large-cap defense stocks face structural underperformance as the lessons of Ukraine and Iran shift warfare models toward agile defense tech.
US-Iran ceasefire ends active Middle East conflict, removing the war-escalation catalyst that inflated defense contractor revenue expectations
A $100B Bezos fund hunting legacy aerospace and defense makers puts a takeover and reshoring bid under the whole basket.
A Second Cold War redirects capital from trade efficiency to rearmament, and defense contractors' order books compound.
Defense spending is going structurally up, permanently, with bipartisan support that strengthens
Surging global defense budgets crowd out private investment
ITA is the iShares US Aerospace & Defense ETF, the most liquid defense expression. Sundheim cites Japan remilitarizing and European defense spending as structural tailwinds. US defense contractors benefit from [allied defense procurement programs](https://www.defense.gov/News/Releases/). ITA up 61% over the last year, +0.77% since source date.
A late-2020s Taiwan-risk window forces sustained U.S. rearmament, lifting defense-prime order books and ITA.