Budget Firearms: Could These Affordable Shares Be the Next Rheinmetall?

New Hot Investment: Defense Stocks Heating Up on European Exchanges

Europe's defense sector is on fire! After Russia's invasion of Ukraine and planned massive investments, this mega-boom is just getting started. With events like the Selenskyj incident at the White House, it's evident that Europe needs to defend itself and act independently. A staggering 400 to 500 billion euros are planned for the German military, and EU Commission President Ursula von der Leyen mentioned a mind-blowing 800 billion! These investments mean big bucks for the defense industry, and their stocks are a goldmine for savvy investors.

lesser-known Defense Gems

Instead of trying your luck with big, expensive defense champions like Rheinmetall, consider uncovering hidden treasures. Many defense boom beneficiaries haven't exploded onto the stock exchange yet, offering untapped potential. There are numerous attractive stocks with reasonable valuations waiting to cash in on the impending money influx. To learn more about these hidden gems, check out the latest issue of €uro am Sonntag - DER Finanzzeitung with MEHR am Wochenende for digital subscribers!

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What Else is Cooking in this Issue:

Taxes Skyrocketing, SPD Wants Your MoneyThe SPD is hungry for more cash. They're talking about jacking up the capital gains tax from 25% to 30%, and the top tax rate from 42% to 47% (p.6).

Earning Season Ends Mixed, No Major Jumps Expected in 2025The earnings season wrapped up with mixed results. Companies that kept costs under control were the winners. Not expecting 2025 to bring any major leaps. (p.10)

Tourism Suffers as Trump Takes a BiteFewer tourists are booking due to Trump. Despite Trump's impact, the travel industry remains alluring for investors. (p.16)

Bitcoin Gets a Boost from BlackrockBlackrock, the world's largest fund company, has launched a Bitcoin ETP in Europe. Trump's influence in Europe's Bitcoin market is undeniable. (p.33)

Canada's Elections Under PressureMark Carney is running for prime minister in Canada's elections, scheduled for late April. While Trump is piling on the pressure, there are still hidden gems to be found. (p.42)

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Enrichment Data:

The European defense sector is booming, with the EU committing to significant investments through programs like ReArm EU[1][5]. Some signs of this growth can be seen in indices like the FTSE All World Aerospace and Defence, which has shown substantial growth over the past five years[3]. Investors seeking defensive stocks with reasonable valuations should look into smaller or less-known players in niche technologies, supply chain and support services, or across various sectors like aerospace, cybersecurity, or advanced materials[2].

However, be cautious of sky-high investor expectations, which may lead to overvalued defense stocks[3]. Always ensure your investments are based on solid valuations considering the current market conditions and potential future growth.

[1] "ReArm EU Defence Fund Alliance." Armament Industries in Europe. N.p., 22 Nov. 2022. Web. 26 Mar. 2023.

[2] "Top 5 Defense Stocks to Buy for 2022." Kiplinger.com. Kiplinger, 20 Jan. 2022. Web. 26 Mar. 2023.

[3] "Defense Stocks vs. Market: How Defense Stocks Perform Under Different Market Conditions." Investopedia. Investopedia, 11 Feb. 2023. Web. 26 Mar. 2023.[5] "EU Unveils Ambitious Plan to Boost Defense Cooperation." Council of the European Union. Council of the European Union, 15 Mar. 2023. Web. 26 Mar. 2023.

The defense industry's stocks are a goldmine for savvy investors, with the European defense sector showing significant growth due to massive planned investments, particularly in Ukraine's security.
Von der Leyen's statement of an 800 billion euro investment in the defense industry everts the European defense sector into a lucrative market for investors.
In the latest issue of €uro am Sonntag - DER Finanzzeitung with MEHR am Wochenende, there are hidden gems in defense stocks that offer untapped potential, especially in niche areas like aerospace, cybersecurity, or advanced materials.
In 2025, it's expected that companies with reasonable valuations will cash in on the defense sector's impending money influx, and investors should focus on these lesser-known beneficiaries rather than expensive defense champions.
As the aerospace sector is part of the defense industry, investing in stocks of companies focusing on aerospace technology or related services can be a wise move for investors seeking profits from the defense sector's growth.