The world is looking forward to a possible peace between North Korea and South Korea. Well, almost.
The share prices of the big arms companies crashed massively after the summit in Korea. This makes it clear once again how important wars are for the arms industry and its banks.
Even a small chance for peace causes the courses to collapse. “It is an important moment that we need to take note of, because it shows the massive incentive that exists in the war industry, and it shows how closely these gains are related to geopolitics,” writes The Mind Unleashed.
After the Korean summit, the major defense companies crashed on time on April:
24: Lockheed Martin (LMT): -9.19%
Northrop Grumman (NOC): -9.62%
Raytheon (RTN): -10.59%General Dynamics (GD): -9.85%
L3 Technologies (LLL): -6.48%
Harris Corporation (HRS): -6.42%
Curtiss-Wright Corporation (CW): -6.82%
That these falls coincide with the Korean peace talks should not be a coincidence. Only Boeing recorded no significant decline, but this is probably related to some positive news about the company (record profits, problems with Airbus, etc.).