Paul Brandus: ​These 3 problems for the U.S. could be big moneymakers for stock investors in 2023

by | Jan 2, 2023 | Stock Market

Good riddance, 2022. It was another disruptive, unpredictable year. War, food insecurity, climate change — the past eight years have been the hottest ever recorded —  and more. But there have also been dazzling breakthroughs in science, medicine and space exploration.  What does 2023 hold? It’s hard to make predictions, the joke goes, especially about the future. But it’s possible to look at existing trends, geopolitical situations, demographics and other dynamics that suggest the direction for certain business sectors in 2023 and beyond. From there, one can research individual companies or funds that may offer value to the discerning investor.  

Here are three investment areas worth further investigation:  1. National security: In absolute terms, the U.S. defense budget — $801 billion in 2022 — is gargantuan, and as critics point out, more than the next nine biggest spenders combined. Five of them—Britain, France, Germany, Japan and South Korea—are allies. China and Russia are potential enemies (the other two are India and Saudi Arabia).   Yet here is why defense spending is rising. Russia’s invasion of Ukraine, a belligerent China, and ongoing regional threats including North Korea and Iran have made the global order that we have known — and seemingly taken for granted — more uncertain today than at any time since World War II.  Russia’s war on Ukraine has laid bare Russia’s weaknesses, but also some of our own. Ukraine, for instance, is firing about 90,000 artillery rounds per month, says analyst Michael Kofman of the Center for Naval Analysis. But the U.S. can produce just 14,000 rounds per month currently — a shortfall that needs to be addressed, not just for Ukraine’s sake but our own. The U.S. has bad …

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