Spotlight on US Space Security Strategy

• White House National Security Advisor Jake Sullivan, “Presentation to U.S. Congressional and Senate leadership on ‘serious national security threat’ … Russian satellite strike capability”
• Kremlin, Russia, “Allegations of Russian deployment of nuclear weapons in space are just a ploy by the US White House”

U.S. House Intelligence Committee Chairman Mike Turner has requested declassification of a serious space security threat, and interest in Russia’s space weapons has increased. Some media reports have speculated that Russian satellites may have nuclear weapons on board, or satellite interceptor weapons on board.
Importantly, none of this information is completely reliable, and it is necessary to try to predict the purpose, intent, and consequences of these reports and claims.

• Russia, “This is a deliberate ploy by the US to support Ukraine”
• U.S., “It is an existential threat that has been identified based on intelligence gathered over a long period of time”

Outer Space Treaty, 1967; prohibits the placement of weapons of mass destruction (WMD) in outer space, prohibits military activities in celestial bodies, and provides detailed legally binding rules governing the peaceful exploration and use of outer space.

A nuclear explosion in outer space could result in radiation damage to Earth, as well as fire and fallout from the blast wave. Even if Russia does not deploy nuclear weapons in outer space, it is likely to research and develop weapons to intercept satellites. The United States is likely to increase its investment in aerospace security to counter this.

• U.S. Senate appropriates money for space security in FY 2024 defense spending bill; +9% increase

The United States is committed to maintaining its hegemony and the liberal democratic, market economy order. After the Cold War, the U.S. sought to maintain order through free trade, and today, in the context of the U.S.-China hegemonic rivalry, it seeks to maintain order through supply chain management and military security.

Last year, global defense spending was the largest on record at $2.2 trillion. This year’s global defense spending is also expected to be the largest ever, with the European Union (EU) and North Atlantic Treaty Organization (NATO) increasing their defense spending to counter Russia, and South Korea, Taiwan, and Japan increasing their defense spending to counter a possible Chinese invasion of Taiwan. Security unrest in the Middle East will also drive Middle Eastern countries to increase their defense spending.

NATO members, U.S. allies, and countries with security treaties with the U.S. are likely to choose U.S.-made weapons, and some may opt for South Korean-made weapons due to their faster production rates.
You may want to consider investing in U.S. and Korean stocks related to aerospace, and defense ETFs that invest in defense stocks will also be an option.

• US ETF: (ITA ETF)iShares US Aerospace & Defense ETF
• US ETF: (SHLD ETF)Global X Defense Tech ETF
• South Korea ETF: (449450)ARIRANG KDefenseFn ETF

In the near future, we will be introducing the (SHLD ETF)Global X Defense Tech ETF in this blog. SHLD ETF is a global defense stocks ETF that includes not only US stocks but also Korean defense stocks.

In the era of economic security, investing in defense stocks is a high priority.
Individuals, countries, and even investment assets need to be prepared for war.

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stockcharts.com; ITA ETF, SHLD ETF