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14 February 2007

SPADE Defense Index

Keep an eye on this excellent measure of the military-industrial complex.

This index (itself traded on AMEX -- "DXS") covers 57 companies in defense (sic), homeland security (sic), and space (sic). Here they are. Some surprises, no?

In 2006, it outperformed the S&P500 for the seventh consecutive year, up 19.33%. An interactive line graph on its performance here, compared to other indexes. Or, to quote them:

From 2000-2006, the SPADE Defense Index GAINED 113.86% vs. a LOSS by the S&P500 of 3.47%
Death, as always, is big business.

Dig their glowing February, 2007, newsletter. (PDF)

Onto Iran! Syria! China! Russia! It's all good for business.

1 comment:

  1. We have bought into the Military Industrial Complex (MIC) ever since we took on Russia in the Cold WAR.

    Through a combination of public apathy and threats by the MIC we have let the SYSTEM get too large. It is now a SYSTEMIC problem and the SYSTEM is out of control.

    I am a 2 tour Vietnam Veteran who recently retired after 36 years of working in the Defense Industrial Complex on many of the weapons systems being used by our forces as we speak.

    There is no conspiracy. The SYSTEM has gotten so big that those who make it up and run it day to day in industry and government simply are perpetuating their existance.

    The politicians rely on them for details and recommendations because they cannot possibly grasp the nuances of the environment and the BIG SYSTEM.

    So, the system has to go bust and then be re-scaled, fixed and re-designed to run efficiently and prudently, just like any other big machine that runs poorly or becomes obsolete or dangerous.

    This situation will right itself through trauma. I see a government ENRON on the horizon, with an associated house cleaning.

    The next president will come and go along with his appointees and politicos. The event to watch is the collapse of the MIC.

    For more details see:

    http://www.rosecoveredglasses.blogspot.com

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