Defense & Aerospace

Defense Sector Rises with Foreign Deals and New Spending

During his Middle East tour, former President Donald Trump secured a historic $142 billion arms deal with Saudi Arabia, which the White House described as the largest defense sales agreement in history. The agreement covered state-of-the-art warfighting equipment and services across five broad categories: air force and space capabilities, air and missile defense, maritime and coastal security, border security and land forces modernization and information and communication systems upgrades.

Additionally, Saudi Arabia committed to a $600 billion investment in various U.S. industries, including defense, energy, technology and infrastructure. This deal further strengthened the defense relationship between the United States and Saudi Arabia, which already had active military sales valued at more than $129 billion.

The One Big Beautiful Bill Act includes $150 billion for the Defense Department. This funding covers a range of military priorities, including $34 billion for shipbuilding, $25 billion for the Golden Dome missile defense system and $8.5 billion for military quality-of-life improvements like barracks maintenance and healthcare. The bill is part of a broader effort to push total defense spending to $1 trillion in fiscal year 2026.

The fresh spending binge from both domestic and foreign allies has put a strong bid under the iShares U.S. Aerospace & Defense ETF (ITA) that traded to a new all-time high this past week. It is home to the world’s leading makers of military hardware, weapon systems, reconnaissance technology and defense infrastructure.

The top 10 holdings in ITA account for 76% of total holdings, and make for smart way for investors to own a diversified position in what is one of the market’s premier sectors, both from a fundamental and technical standpoint. The bullish money flow into this space and investors should use pullbacks to considering adding ITA to portfolios.

Exclusive Three Defense Investments with Potential to Outperform

Being it is Memorial Day, I want to pay tribute to all the families of fallen loved ones that gave their best in defense of the United States as dutiful men and women of our beloved armed forces. Thank you for your service for all those serving today. May God Bless America!

Bryan Perry

For over a decade, Bryan Perry has brought his expertise on high-yielding investments to his Cash Machine subscribers. Before launching the Cash Machine advisory service, Bryan spent more than 20 years working as a financial adviser for major Wall Street firms, including Bear Stearns, Paine Webber and Lehman Brothers. Bryan co-hosted weekly financial news shows on the Bloomberg affiliate radio network from 1997 to 1999, and he’s frequently quoted by Forbes, Business Week and CBS’ MarketWatch. He often participates as a guest speaker on numerous investment forums and regional money shows around the nation. With over three decades of experience inside Wall Street, Bryan has proved himself to be an asset to subscribers who are looking to receive a juicy check in the mail each month, quarter or year. Bryan’s experience has given him a unique approach to high-yield investing: He combines his insights into dividend-paying investments with in-depth fundamental research in order to pick stocks with high dividend yields and potential capital appreciation. With his reputation for taking complex investment strategies and breaking them down to easy-to-understand advice for investors, Bryan also has several other services. His other services range from products that generate a juicy income flow to quick capital gains by using a variety of other strategies in his Breakout Blue Chip Trader, Quick Income Trader, and Hi-Tech Trader services.