POLLING MATTERS
MARCH 11, 2022
POLLING MATTERS
MARCH 11, 2022
Defense Investing in the Context of U.S. Public Opinion
BY FRANK NEWPORT
The U.S. is not directly involved in the current war in Ukraine, but the conflict has, inevitably, increased the focus on America's military. Investors have zeroed in on military and defense stocks, running up their values in anticipation of increased defense spending, both here and in allied countries.
The U.S. government's military spending in the next fiscal year is almost certainly going to rise significantly, according to news reports, underscoring why investors are interested in defense-related stocks. As Forbes analyst Sergei Klebnikov recently summarized, "Shares of major U.S. aerospace and defense companies, which have jumped since Russia launched its invasion of Ukraine last week, should continue to surge higher as global defense spending budgets increase in response to the conflict in Eastern Europe, analysts predict." Another investing site recently cut straight to the financial chase, headlining its report, "10 Defense Stocks to Buy as Geopolitical Tensions Rise."
We know that public opinion can have a significant, albeit largely indirect, impact on the stock market and corporate governance -- mainly through consumer purchasing decisions and influence on government policymaking. The consumer angle isn't a factor in this situation. But government policy does (and should) reflect public opinion, and that opinion at this point is generally positive. The public has confidence in the military and believes it is doing a good job, and a significant majority of Americans also believe it is important that the U.S. maintain the best military in the world. But Americans' views on increased defense spending are mixed when they are asked about it directly.
U.S. Public Opinion Supportive of the Military
BY FRANK NEWPORT
The U.S. is not directly involved in the current war in Ukraine, but the conflict has, inevitably, increased the focus on America's military. Investors have zeroed in on military and defense stocks, running up their values in anticipation of increased defense spending, both here and in allied countries.
The U.S. government's military spending in the next fiscal year is almost certainly going to rise significantly, according to news reports, underscoring why investors are interested in defense-related stocks. As Forbes analyst Sergei Klebnikov recently summarized, "Shares of major U.S. aerospace and defense companies, which have jumped since Russia launched its invasion of Ukraine last week, should continue to surge higher as global defense spending budgets increase in response to the conflict in Eastern Europe, analysts predict." Another investing site recently cut straight to the financial chase, headlining its report, "10 Defense Stocks to Buy as Geopolitical Tensions Rise."
We know that public opinion can have a significant, albeit largely indirect, impact on the stock market and corporate governance -- mainly through consumer purchasing decisions and influence on government policymaking. The consumer angle isn't a factor in this situation. But government policy does (and should) reflect public opinion, and that opinion at this point is generally positive. The public has confidence in the military and believes it is doing a good job, and a significant majority of Americans also believe it is important that the U.S. maintain the best military in the world. But Americans' views on increased defense spending are mixed when they are asked about it directly.
U.S. Public Opinion Supportive of the Military
https://news.gallup.com/opinion/polling-matters/390644/defense-investing-context-public-opinion.aspx
