On the morning of December 11, 2012, the 45th Space Wing of the U.S.
Air Force launched a mysterious Atlas V rocket carrying a top-secret
payload.
One year later, most of the mystery remains unsolved.
But we do know that the secret rocket was carrying some of the
American military’s coolest new tech, namely the X-37B Orbital Test
Vehicle.
The X-37B was built by Boeing (BA) in California. Defense industry analysts have multiple theories about the vehicle’s purpose, but no one’s really sure.
A year has passed and the mysterious weapon is still in orbit. Half
space shuttle, half predator drone, the X-37B is something directly out
of the videogame Halo.
Some people believe that the Air Force is testing an orbiting weapon capable of destroying enemy satellites.
Others believe it’s a new system for delivering bombs to any part of
the globe with pinpoint accuracy. By attacking from space, the X-37B
could completely evade enemy air defenses.
Still other analysts speculate that the X-37B isn’t a test vehicle at all.
They believe it’s already commanding drones in conventional airspace and being used in the Middle East as we speak.
The program’s clandestine elements keep everything hush-hush, but the X-37B is obviously highly maneuverable.
And since it’s unmanned, it can stay in space for incredibly long periods of time.
Whatever the vehicle’s ultimate purpose, it’s the kind of technology that fuels my belief in American defense contractors.
In fact, I feel that no portfolio is complete without investing in
the transformative military technology created by companies like Boeing.
Yet for some reason, the defense technology sector is often overlooked by casual investors.
It doesn’t make much sense, seeing that the sector is a crucial
contributor to technological innovation and American tech superiority.
And with the political intelligence we’ve mined in Washington, D.C., defense tech is a wellspring of profit for our portfolios.
The Spoils of War
There are two truths about war: It’s constant, and it’s profitable.
And when it comes to the military, those with an ear to the ground
can accrue massive returns. Military actions are always a breeding
ground for government money and corporate gains.
High-tech weapons don’t come cheap, and Uncle Sam wants the latest and greatest at his disposal when the fighting begins.
With that in mind, the X-37B is just one of many superior technologies we’re closely monitoring.
You see, U.S. defense contractors, in conjunction with the military,
have been developing numerous weapons systems that look like they’re
ripped from the pages of science fiction novels.
For instance, the Navy recently launched a drone from the torpedo
tube of a submerged submarine. The drone literally blasts straight out
of the water and into flight.
This kind of aircraft could prove invaluable to reconnaissance or
special operations missions, as our quiet submarines can go anywhere in
the world.
Another amazing technology is the Navy’s rail gun, an ultra-powerful
electromagnetic gun that will be deployed around 2025. It utilizes a
magnetic field and electric current rather than chemical explosives to
fire the rounds.
This is perhaps the greatest munitions advancement since flint and powder replaced the crossbow.
The rail gun will shoot rounds as far as 100 miles at several times
the speed of sound, meaning the rail gun can obliterate inland targets
from a safe distance.
The munitions used are faster and smaller than any available
air-based weapon, and they’d easily avoid enemy air and sky defenses.
The bottom line is that American defense contractors are at the
absolute cutting edge of military technology. And if you’re not
investing in this sector, you’re forfeiting spectacular returns from the
technology that will keep America – and the world – safe in the decades
ahead. As Always The Plain Truth!
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