Coincidence Or Correlation? Defense Stocks Historically Outperform Before Election Day

As the 2016 U.S. presidential election season begins to ramp up, Deutsche Bank believes that now is the time to buy defense stocks. In a new report, analyst Myles Walton discusses the favorable setup for defense stocks ahead of the election.

National security headlines
Typically, awareness of national security-related issues tends to be higher during presidential election seasons. "In nearly every election cycle in the past 20+ years, the defense stocks have outperformed in the year prior to Election Day," Walton explains.

This year, headlines about the Middle East, ISIS, Russia and China should continue to dominate national security news and keep defense stocks at the forefront of traders’ minds.