Modern Warfare Stocks Handily Beat the S&P 500

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March 28 (Bloomberg) -- On today's “Single Best Chart,” Bloomberg's Scarlet Fu looks at defense stocks on Bloomberg Television's “Bloomberg Surveillance.” Motif Investing's Hardeep Walia also speaks. (Source: Bloomberg)

Was in the back room.

I don't think it is a big deal.

What matters is policy issues, we tend to focus on this.

On friday, we know what is a big deal is single best chart.

In a world of less spending, less government spending on defense and sequestration, warfare defense stocks are eating the s&p 500. the s&p is up about 18% over the past year.

Hardeep walia, you came up with this chart.

Explain what is going on.

Modern warfare stocks, the white wine, have done better than the broader market.

Who would have thought modern warfare would be the s&p. the modern warfare index is asymmetrically weighted index weighted towards higher roi's, drones, not conventional warfare.

The blue line is a conventional warfare etf.

There has been a move and dollars away from conventional to higher roi spending.

The sequester within the u.s.. for emerging markets, 20% of the growth is driven by asia -- ukraine and instability.

When people ask -- people last year were looking at defense as not a good place to be.

This proves something else.

When i think of warfare stocks, it is weird to say that term.

Lockheed martin, northrop grumman, do you lump them together or is there more specific company's? there are specific covenants, irobot is in there.

The methodology has more to do with waiting.

There are conventional and nonconventional, the methodology focuses on the higher roi's -- drones are doing well.

Not conventional things that are not gaining.

A missed opportunity for anyone who doubted defense stocks.

Can it continue question mark with what is going on in asia, everyone is now worried.

This is a nice way to play currency markets.

What would you do in banking?

What is the motif for banking question mark we have a fed tapering motif.

It is doing well, we have a too big to fail index.

Companies that are deemed by the government as too big to fail.

There is a discount they get because of that.

We do the s&p by close to 11. is it the discount or the complexity?

Once you go into big firms,

This text has been automatically generated. It may not be 100% accurate.


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