European and Asian defense stocks have rallied this year. A lack of trust in the U.S. could be driving those gains [MSNBC.com]
THYSSENKRUPP AG S/ADR (TKAMY)
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Source: MSNBC.com
Asian and European defense stocks have been outperforming their U.S. counterparts.Guvendemir | E+ | Getty ImagesA quote from the 2008 TV series "Star Wars: The Clone Wars" goes: "Wars are not won with superior weapons, but with superior strategy."Following the Trump administration's rattling of long-held global alliances, countries have poured money into their own defense budgets, sending defense stocks higher.The rising tide of increased defense spending typically lifts all arms stocks, however European and Asian defense stocks have been outperforming their U.S. counterparts.While stocks have generally sold off after U.S. President Donald Trump announced his plan for "reciprocal tariffs", European and Asian arms manufacturers are still posting respectable gains on a year-to-date basis, with some rising over 100%.Veteran investor and strategist at Quantum Strategy David Roche told CNBC the rise in defense stocks outside of the U.S is due to the reduction in trust of the U.S. as an all
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