How To Invest In Defense Stocks To Capitalize On U.S. Government Spending In 2023

Key takeaways

• The U.S. government is poised to spend about $800 billion on defense in the coming year
• Some publicly-traded companies compete for government defense contracts that can be worth billions of dollars
• Investors may want to consider investing in defense contractors to capture some of the profits U.S. defense spending creates

The U.S. government spends far more on defense than any other country, awarding contracts worth hundreds of millions of dollars to American companies that manufacture military technology and equipment.

Many investors see this as an opportunity to invest in companies with a mostly-guaranteed customer with significant financial resources. We’ll break down the defense budget and investment opportunities based on U.S. defense spending.