Bank Of America: Arms race across Asia"

With tensions accelerating in North Korea – US President Trump tweeted Wednesday “talking is not the answer” – this might be the time to invest in US defense stocks. Even though valuations are high, and investors shouldn’t expect earnings multiple expansion, demand is likely to increase in what is a major “growth industry”, particularly for missile defense spending, a Bank of America US Trust analyst told ValueWalk. What’s more, increased mergers and acquisitions and a dramatic increase in spending by Germany and Japan are factors likely not priced into the market that will drive stock prices higher. [russia] The steady military buildup…