XAR: What If The Biggest Increase In Military Budgets Since The Cold War Is Just Beginning?
Summarize this article with:
Multiplo Invest2.4K FollowersFollow5ShareSavePlay(8min)CommentsSummaryI reiterate my buy recommendation on State Street® SPDR® S&P® Aerospace & Defense ETF due to robust geopolitical tailwinds.XAR benefits from the U.S. national security strategy, with potential defense budget increases from $1 trillion to $1.5 trillion acting as a major catalyst.Despite XAR trading at 52-week highs and elevated P/E multiples, the military budget relative to GDP remains historically low, supporting further upside.Key risks include potential global military budget reallocations triggered by severe recessions in Russia or China, but the risk-return remains attractive. AndreyPopov/iStock via Getty Images Investment Thesis I reiterate my buy recommendation on the State Street® SPDR® S&P® Aerospace & Defense ETF (NYSEARCA:XAR). This article is a continuation of my initial coverage article published on July 3, 2025This article was written byMultiplo Invest2.4K FollowersFollowMore than 7 years of experience in equity analysis in LatAm. We provide our clients with in-depth research and insights to help them make informed investment decisions.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.