In 2022, Indian Prime Minister Narendra Modi famously told his Russian counterpart Vladimir Putin that it “is not an era of war.” With the benefit of hindsight, the reverse only seems to be happening, and even India had a brief but significant armed conflict with archrival and neighbor Pakistan last year. The Russia-Ukraine war, or the “special military operation,” as Putin likes to call it, has dragged on for four years, while the Middle East is on the boil again after Iran’s supreme leader, Ali Hosseini Khamenei, was killed in joint strikes by the U.S. and Israel over the weekend. There have been “mini war zones” globally, and President Trump has naturally taken dubious credit for ending many of these wars, including between Armenia and Azerbaijan and also Thailand and Cambodia.
We can be reasonably sure that geopolitical tensions will stay elevated for the near foreseeable future. Given that backdrop, I find Lockheed Martin (LMT) and Agnico Eagle Mines (AEM) as two stocks that can benefit from the elevated geopolitical tensions.
