President Trump’s meeting with Ukraine President Zelensky didn’t end very well.
And at the moment, the flow of weapons to Ukraine has stopped and there could be a cancellation of further military aid and money.
If that’s the case, Europe could step up in defense of Ukraine, which is already boosting defense stocks, like UK contractor BAE Systems (BAESY). In fact, over the last few days, BAESY exploded from a low of about $58 to a recent high of $84.51. And while the stock is over-extended, it could see further upside momentum depending on future US/Ukraine relations.
“Where U.S. spending could go isn’t clear right now. Relations between Kyiv and Washington are now more fraught than ever after a tentative agreement to swap U.S. securities for Ukraine against Russia in exchange for mineral rights in the country fell apart. Trump and his lieutenants accused Zelensky of being ungrateful for past U.S. support, a signing ceremony was canceled and the Ukrainian delegation was asked to leave.”
If you want broader exposure to defense stocks, consider ETFs such as:
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