Defense stocks on Wednesday hit new highs as Defense Secretary Robert Gates requested an extra $42 billion in funding from Congress to cover military costs in Iraq and Afghanistan in 2008.
The AMEX Defense Index, which tracks 14 major defense company stocks, rose 14.25 to a high of 1,686.72 in afternoon trading. Since last year, the index has risen roughly 47 percent, outperforming the broader S&P 500 index, which has climbed nearly 15 percent over the same period.
Although the anticipated request for more funding does not come as a surprise to Wall Street, the Pentagon’s message nevertheless reinforces the idea that defense spending will remain high in the near-term, said Myles Walton, a CIBC World Market Corp. analyst.
The Military/Industrial Complex is doing well. The rich are getting richer from the war crimes paid for with our grandchildren's money. Mission accomplished. Bastards.
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