Lockheed Martin (LMT)
I’ll be the first to admit that on the surface, everything looks fine. Lockheed Martin is making an incredible amount of money, and it looks as though it will continue to do so for as long as the current political climate remains in place. Yes, I just crossed a line—not into politics, but into acknowledging that some stocks carry political risk. Of course, to some ways of thinking, that, in itself, is politics.
When I speak of political danger, I mean, in one sense, the very real possibility that Democrats will take over the House of Representatives in the 2018 mid-term elections. How real? Here’s one opinion from fivethirtyeight.com. A Democratic victory would, beyond doubt, be trouble for Lockheed Martin, since Democrats would almost certainly raid the company’s enormous allocation of Federal spending.
Beyond that, I also have a broader, more long-range concern that the sheer partisanship of America will cause us to question not whether we need what Lockheed Martin is building, but whether we even want it. We are so divided as a country that most Americans will likely view it as a threat to democracy as soon as / whenever their party of affiliation is out of power. We are, in short, too divided to grant ourselves this power. It isn’t wise, it isn’t cautious, and it isn’t within any screaming measure, affordable.
But wait, you may ask, aren’t we just talking about a new generation of fighter aircraft, the F-35? Isn’t that how it works—one generation of things gets old, so we need to push technology forward in order to maintain our edge? Yes and no. One aspect of America’s military that remains unchallenged and well-nigh unchallengeable is our global air-superiority. We established it so that we could land at Normandy and fight the Nazis, and from a discrete distance, we’ve held on to it. Yet this is what Lockheed Martin is currently upgrading for us. To what, you ask? Here’s the story, from the source.
This new technology will allow a designated controller (password protected?) to destroy any enemy, simply by envisioning that enemy, clicking his heels together three times, and whispering “I wish you into a cornfield.” I paraphrase.
Of course if you don’t buy any of that, it doesn’t matter because the threat to Republican control of the House is so serious. The Street sometimes gets it wrong, and in this case, it simply appears to have miscalculated the odds.
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