The fact is, when the Cold War ended and the Soviet Union collapsed, America made some bad decisions. The fact is, when the Cold War ended and the Soviet Union collapsed, America made some bad decisions.
                                                                                                     [Wealth Daily] Jason Simpkins / Dec 2, 2023 Americaâs Desperate Bid to Catch Its Adversaries Complacency⦠Overreach⦠Bureaucracy⦠Shortsightedness⦠All these things and more have put Americaâs security in a precarious position. The fact is, when the Cold War ended and the Soviet Union collapsed, America made some bad decisions. Too many to really get into here, really. But suffice to say, policymakers, lobbyists, and even the arms dealers themselves let our countryâs manufacturing base atrophy. With no true near-peer competitor to contend with, America saw no need to prepare for war. So rather than continue to churn out munitions that would only sit in warehouses, defense contractors curtailed production and focused instead on elaborate and expensive high-end weapons platforms like fighter jets and submarines. Then came the wars in Iraq and Afghanistan, and military interventions in Lebanon and Syria, which drained Americaâs once-robust stockpiles â just as Russia and China rushed to grow their arsenals exponentially. Now, having shipped off most of our excess supplies to Ukraine, and still more to Israel, weâre in a bit of a bind. And the only way out is a multimillion-dollar build-out of manufacturing capacity. This Pill Will âDefine the Next Decadeâ A new medical breakthrough smaller than the size of your pinkie is about to reshape human history. Because believe it or not, this tiny pill can eradicate every single sign and symptom of aging and disease... Which leaves you looking and feeling forever young. Donât believe it? [Check out this proof...]( For example, RTX (NYSE: RTX) and Rafael Advanced Defense Systems just announced plans for a new $33 million production facility in Arkansas. The plant will manufacture missiles to be used in U.S. and Israeli air defense systems â namely Tamir missiles for Israelâs Iron Dome system and an American variant called Skyhunter. Indeed, the Iron Dome is the most active missile defense system in the world, and itâs only getting busier. But, naturally, itâs not just Israel that needs to worry about rocket attacks, which is why the Skyhunter was developed for similar systems in the United States and Europe RTX plans to break ground on the new facility by the end of the year. Itâs set to start production in 2025 and ultimately churn out 1,000â2,000 missiles annually. Similarly, Lockheed Martin (NYSE: LMT) is working to increase its output of Javelin anti-tank missiles, which were instrumental in rebuffing Russiaâs initial invasion of Ukraine. As it currently stands, Lockheed Martin produces about 2,100 Javelins per year. Yet Ukraine is burning through them at a rate of 500 per day. And theyâve been so successful that other countries are lining up to acquire them for their own defense. In particular, Poland and its state-run defense group PGZ have signed a memorandum of understanding with both Lockheed Martin and RTX to jointly produce Javelins there. Lockheed Martin hopes that will be part of an effort to increase its annual production to 3,960 by 2026. The Stinger anti-aircraft missile is another hot commodity thatâs seen resurgent demand. Unfortunately, that caught RTX off guard because the missile has been out of production for 20 years. Oppenheimer Would NEVER Have Seen This Coming After 70 years, J. Robert Oppenheimerâs legacy is being rewritten. Itâs all due to the breakthroughs being made in next-gen nuclear technology, like small modular reactors (SMRs). These mini reactors are safer, smaller, and will start popping up all over the world in the next few years... But the real opportunity isnât in the builders of these SMRs â itâs in their fuel source. [You need to see this one for yourself immediately.]( In a sign of just how bad things got, a request for 1,700 Stingers made by the Army in May 2022 wonât be fulfilled until 2026. RTX has even had to call up retired engineers (some of them now in their 70s) to retrain its current employees in their production. And finally, Americaâs supply of 155 mm artillery shells have been absolutely eradicated by a conflict thatâs seen anywhere from 4,000-8,000 rounds expended each day. In a hurried effort to backfill those stocks, General Dynamics (NYSE: GD) has gone from producing 14,000 155 mm rounds per month to 20,000 and is working with the Pentagon to further expand production to 100,000 rounds per month in the years ahead. Happily, that effort is ahead of schedule. And that is the good news here. We never should have let things deteriorate to this extent, but a massive backlog of new orders has provided the kind of long-term sustainability for production programs that hasnât been seen since the Cold War. Companies like RTX, Lockheed Martin, and GD can now invest in new plants, new workers, and new supply chains, confident that the demand and government funding is there. The Biden White House even allocated $30.6 billion to acquire missiles and munitions in the current fiscal year, up 51% from the 2022 level. So the investments are being made. And if investors get in now, theyâll be there to reap the gains when these contracts finally get fulfilled. Of course, if you really want to profit from defense spending, you should check out my latest report on cutting-edge AI technology thatâs powering the war machines of the future. You can [find out more about that here.]( Fight on, [Jason Simpkins Signature] Jason Simpkins Simpkins is the founder and editor of [Secret Stock Files](, an investment service that focuses on companies with assets â tangible resources and products that can hold and appreciate in value. He covers mining companies, energy companies, defense contractors, dividend payers, commodities, staples, legacies and more... In 2023 he joined The Wealth Advisory team as a defense market analyst where he reviews and recommends new military and government opportunities that come across his radar, especially those that spin-off healthy, growing income streams. For more on Jason, check out his editor's [page](. Be sure to visit our Angel Investment Research channel on YouTube and [tune into Jason's podcasts.]( Want to hear more from Jason? [Sign up to receive emails directly from him]( ranging from market commentaries to opportunities that he has his eye on. [follow basic]([@OCSimpkins on Twitter]( [Feedback? get in touch](mailto:/newsletter@wealthdaily.com?subject=Wealth%20Daily%20feedback) [Read this email online]( [Manage Newsletters]( [Share on Twitter]( You signed up for our newsletter with the email {EMAIL}.
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