As the world grapples with conflicts in Ukraine and Israel, the shares of defense corporations in the public domain have witnessed a significant boost. This surge coincides with the US government's substantial war spending and a reported increase in politicians' financial gains from investments in defense firms such as Palantir, L3Harris, Lockheed Martin, and Northrop Grumman.
Politicians' Financial Interests in Defense Companies Amidst Global Tensions
From February 24, 2022, the Biden administration has been providing support to Ukraine in their conflict with Russia. About $75 billion has been allocated to aid Ukraine's military efforts. The recent escalation between Hamas and Israel has added to the tense situation. Many US politicians have been vocal in their support for military action. As a result, the share prices of publicly listed defense corporations have skyrocketed, outperforming many Wall Street equities. For example, over the past 30 days, Lockheed Martin's (NYSE: LMT) stock has seen a 3.8% increase.
Northrop Grumman (NYSE: NOC) has seen more than a 13% rise, Palantir (NYSE: PLTR) has experienced a 10% surge, and L3Harris (NYSE: LHX) has grown 4.4% against the US dollar in the past month. On the social media platform X, formerly known as Twitter, the account "Unusual Whales" has been highlighting the investments by US officials in defense companies amidst these conflicts.
US Officials' Investments in Defense Stocks: A Deep Dive
An update from "Unusual Whales" revealed, "Another US Congressman has ONCE AGAIN bought war stocks before the Israel and Palestine conflict." It was reported that Representative Josh Gottheimer purchased up to $15,000 of Northrop Grumman Corp., NOC, on Sept. 26, 2023. He is a member of the National Security Agency and Intelligence Committees. The X account has also exposed a plethora of politicians from both Democratic and Republican parties who have invested millions in defense corporation stocks.
Implications of Policymakers' Investments in Defense Corporations
The issue with politicians investing in defense stocks is the significant resources these corporations dedicate to lobbying. These companies lobby to influence Congress and other sectors of the US government. Their goals range from securing defense contracts, shaping defense policy, to maintaining high military spending.
Moral Dilemma: Profits from War Stocks and Political Integrity
Many argue that there is a striking conflict of interest when US politicians invest in defense stocks while endorsing several wars. Anti-war activists argue that this presents a moral problem. They find it disconcerting that those responsible for the nation's well-being are profiting from the escalation of war and violence. This complex interplay between war politics and personal benefit threatens the ethical basis of governance, casting a grave shadow over the integrity of political decision-making.
What's your take on US politicians profiting from war stocks? Share your views on this subject below.
Frequently Asked Questions
What precious metals can you invest in for retirement?
It is gold and silver that are the best precious metal investment. Both are easy to sell and can be bought easily. These are great options to diversify your portfolio.
Gold: Gold is one of man's oldest forms of currency. It is also extremely safe and stable. It's a great way to protect wealth in times of uncertainty.
Silver: Silver is a popular investment choice. It's a good choice for those who want to avoid volatility. Unlike gold, silver tends to go up instead of down.
Platinum: A new form of precious metal, platinum is growing in popularity. It's durable and resists corrosion, just like gold and silver. It is, however, more expensive than its competitors.
Rhodium: The catalytic converters use Rhodium. It is also used to make jewelry. It is also very affordable in comparison to other types.
Palladium: Palladium has a similarity to platinum but is more rare. It's also more accessible. For these reasons, it's become a favorite among investors looking to add precious metals to their portfolios.
Can I buy or sell gold from my self-directed IRA
Your self-directed IRA can be used to purchase gold, but first you need to open an account with a brokerage firm such as TD Ameritrade. You can also transfer funds from an existing retirement fund.
The IRS allows individuals up to $5.500 annually ($6,500 if you are married and filing jointly). This can be contributed to a traditional IRA. Individuals are allowed to contribute $1,000 each ($2,000 if married or filing jointly) to a Roth IRA.
If you do decide that you want to invest, it is a good idea to buy physical bullion and not in futures. Futures contracts can be described as financial instruments that are determined by the gold price. They allow you to speculate on future prices without owning the metal itself. But physical bullion refers to real gold and silver bars you can carry in your hand.
What is a Precious Metal IRA?
A precious metal IRA allows you to diversify your retirement savings into gold, silver, platinum, palladium, rhodium, iridium, osmium, and other rare metals. These are “precious metals” because they are hard to find, and therefore very valuable. They make excellent investments for your money and help you protect your future from inflation and economic instability.
Bullion is often used to refer to precious metals. Bullion refers to the actual physical metal itself.
Bullion can be purchased through many channels including online retailers and large coin dealers as well as some grocery stores.
A precious metal IRA allows you to invest directly in bullion, rather than buying stock shares. This will ensure that you receive annual dividends.
Precious metal IRAs do not require paperwork nor annual fees, unlike regular IRAs. Instead, you pay a small percentage tax on the gains. Additionally, you have access to your funds at no cost whenever you need them.
What are the benefits of a Gold IRA?
The best way to save money for retirement is to place it in an Individual Retirement Account. You can withdraw it at any time, but it is tax-deferred. You can decide how much money you withdraw each year. There are many types to choose from when it comes to IRAs. Some are better suited for people who want to save for college expenses. Others are designed for investors looking for higher returns. For example, Roth IRAs allow individuals to contribute after age 59 1/2 and pay taxes on any earnings at retirement. But once they start withdrawing funds, those earnings aren't taxed again. This account is a good option if you plan to retire early.
An IRA with a gold status is like any other IRA because you can put money into different asset classes. Unlike a regular IRA which requires taxes to be paid on gains as you wait to withdraw them, a IRA with gold allows you to invest in multiple asset classes. This makes gold IRA accounts excellent options for people who prefer to keep their money invested instead of spending it.
Another benefit to owning IRA gold is the ability to withdraw automatically. This means that you don't need to worry about making monthly deposits. Direct debits could be set up to ensure you don't miss a single payment.
Finally, the gold investment is among the most reliable. Its value is stable because it's not tied with any one country. Even in times of economic turmoil gold prices tend to remain stable. This makes it a great investment option to protect your savings from inflation.
Is it a good retirement strategy to buy gold?
While buying gold as an investment may seem unattractive at first glance it becomes worth the effort when you consider how much gold is consumed worldwide each year.
Physical bullion is the most popular method of investing in gold. But there are many other options for investing in gold. It is best to research all options and make informed decisions based on your goals.
If you're not looking to secure your wealth, it may be worth considering purchasing shares in mining equipment or companies that extract gold. If you need cash flow from an investment, purchasing gold stocks is a good choice.
ETFs are an exchange-traded investment that allows you to gain exposure to the market for gold. You hold gold-related securities and not actual gold. These ETFs often include stocks of gold miners, precious metals refiners, and commodity trading companies.
Is it a good idea to open a Precious Metal IRA
Precious metals are not insured. This is the most important fact to know before you open an IRA account. There are no ways to recover the money you lost in an investment. All your investments can be lost due to theft, fire or flood.
You can protect yourself against such losses by purchasing physical gold and silver coins. These coins have been around for thousands and represent a real asset that can never be lost. They are likely to fetch more today than the price you paid for them in their original form.
Choose a reputable company with competitive rates and quality products if you are looking to open an IRA. A third-party custodian is a good option. They will protect your assets while giving you easy access whenever you need them.
You won't get any returns until you retire if you open an account. Do not forget about the future!
How much gold do you need in your portfolio?
The amount that you want to invest will dictate how much money it takes. You can start small by investing $5k-10k. Then as you grow, you could move into an office space and rent out desks, etc. Renting out desks and other equipment is a great way to save money on rent. You only pay one month.
It's also important to determine what type business you'll run. In my case, we charge clients between $1000-2000/month, depending on what they order. You should also consider the expected income from each client when you do this type of thing.
As freelance work requires you to be paid freelancers, your monthly salary won't be as high as mine. You might get paid only once every six months.
So you need to decide what kind of income you want to generate before you know how much gold you will need.
I recommend starting with $1k to $2k of gold, and then growing from there.
Statistics
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
External Links
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- Want to Keep Gold in Your IRA at Home? It's Not Exactly Legal – WSJ
bbb.org
investopedia.com
cftc.gov
How To
3 Ways to Invest in Gold for Retirement
It is important to understand the role of gold in your retirement plan. You have many options for investing in gold if there is a 401K account at your workplace. You might also be interested to invest in gold outside the workplace. For example, if you own an IRA (Individual Retirement Account), you could open a custodial account at a brokerage firm such as Fidelity Investments. You may also want to purchase precious metals from a reputable dealer if you don’t already have them.
These are three easy rules to remember if you invest in gold.
- Buy Gold with Your Money – You don't need credit cards, or to borrow money to finance your investments. Instead, cash in your accounts. This will help to keep your purchasing power high and protect you against inflation.
- Physical Gold Coins – Physical gold coins are better than a paper certificate. Physical gold coins are easier to sell than certificates. Also, there are no storage fees associated with physical gold coins.
- Diversify your Portfolio. In other words, spread your wealth around by investing in different assets. This reduces risk and allows you to be more flexible during market volatility.
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By: Jamie Redman
Title: Defense Stock Investments by US Politicians: An Ethical Dilemma Amidst Global Unrest
Sourced From: news.bitcoin.com/congressional-investments-in-defense-stocks-raise-ethical-eyebrows-amidst-ongoing-wars/
Published Date: Tue, 17 Oct 2023 16:30:46 +0000
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