Is it still worth investing in armaments stocks?

Cologne While stock market prices are falling worldwide, the papers in one division are at record levels: defense stocks. Shortly after the start of the Russian war of aggression against Ukraine, prices rose sharply.

After the “Zeitenwende” speech, in which Federal Chancellor Olaf Scholz announced a special fund of 100 billion euros for the Bundeswehr, the quotations of the German arms manufacturers literally shot up. Rheinmetall, Hensoldt and Heckler & Koch increased in some cases by more than 100 percent.

At Heckler & Koch, the share certificate became significantly cheaper again. However, it is still up 20 percent this year.

With defense stocks soaring, investors are wondering whether they should continue to invest in military equipment makers, perhaps despite previously harbored ethical concerns. According to analysts, a commitment could be worthwhile in the medium to long term. Foreign defense stocks are also worth a look.