Defence Spending8 Jan 2026 09:59
Back in the 90’s I was massively into my music and also the Hi-Fi system that went hand in hand. I would save and buy the best amp, cassette player, CD player, pre-amp for my turntable , radio etc. One thing that always stuck with me is buying high quality equipment is great but if you have crappy cables connecting it all, it pointless. As a rule of thumb, up to 10% of the total cost should be spent on cabling, those big thick copper RCA type cables to ensure you have a good connection, reduce noise interference, and get the best sound out of the big investments you have put in.
Those RCA cables is like Defence spending. You can have the best health system, welfare system, infrastructure, quality of life, but unless you have a deterrent in terms of defence it’s a massive waste of time as anyone can just come along and cause ‘interference’ and worse case destroy all. And yes, I am saying up to 10% of GDP should be spent and people need to understand why, in this new world we live in.
Defence spending will only be going up. Energy security will be hand in hand or at least should be.. There is no point spending billions on projects if you cannot protect them. RR will continue to raise over the next decade if it stays on track (in my opinion) and PE ratio’s, EPS and all those other things people like to quote in the financial press will mean very little. Simply put the market won’t care. Nothing really makes any sense on that front anymore and sometimes you just need to go with your ‘gut’.
As always try to do nothing when it comes to this stock, just sit on it if you can (and i mean the stock Badlands, nothing else ;-))
Cheers
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