CNBC’s Jim Cramer said Thursday that he is bullish in the defense sector and has four stocks in mind that he believes are investable.
“There is at least one industry booming right now, and it will continue to grow regardless of what happens with the [Federal Reserve] in particular or the US economy in general. I’m talking about the defense industry, which is on fire “, the “crazy money“said the host.
“The Russian invasion of Ukraine is a turning point for the defense industry, and you really have to be in the dark not to notice it,” he added.
Here is Cramer’s list of four investable defense stocks:
Cramer also noted that the iShares US Aerospace & Defense ETF and the Invesco Aerospace & Defense ETF they have since the beginning of the year declines of about 4% and 5% respectively, while the S&P 500 has fallen by about 18%.
“This is just the beginning. If defense contractors can hold up so well during the worst tape in years, I bet they can skyrocket when the market gets a little less hostile,” He said.
He added that the US and European countries are likely to try to invest more in defense.
The United States, that Thursday past a $ 40 billion security assistance package for Ukraine will have to spend to replenish its stocks of military equipment while continuing to send aid to the warring country, Cramer said.
Citing the recently launched one from Sweden and Finland proposes to join NATOCramer predicted that the two countries will have to increase their military spending.
“If Sweden and Finland unite, they will have to substantially increase their defense spending as part of their treaty obligations, but they would probably do so anyway, as they live right next to Russia,” he said.
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