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Defense stocks to buy as North Korea rhetoric rises

While Hurricane Irma has dominated news coverage in recent days, the bigger long-term story as of late has been the rising rhetoric involving North Korea and its nuclear ambitions.

It is no secret that North Korea wants to develop the nuclear capability to hit the mainland U.S., or the American territory of Guam. Through the years, nations have tried using sanctions and military threats to deter North Korea from developing nuclear capabilities, but those efforts have done little to prevent the ongoing development of the nation’s nuclear program.

After a series of missile tests, and an apparent test last week of a new nuclear device, tensions are high between North Korea and the rest of the world. Even nations such as China and Russia have expressed concern over the country’s nuclear program, but as of yet have been unwilling to definitely agree to tougher sanctions, including an oil embargo.

While the possibility of a nuclear confrontation is still a far-fetched idea, if North Korea continues to perform missile and nuclear tests, it is definitely in the realm of possibility that some sort of military action could be taken against the country to prevent further nuclear developments.

Given the rise in rhetoric between the U.S. and North Korea, it would be wise to loo at a few defense stocks to add to your portfolio.

Here are five possible candidates you may want to consider buying, or adding to current positions.

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Michael Fowlkes

Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va.