Stocks that historically perform well during wartime include aerospace and defense contractors, energy and oil producers, cybersecurity firms, and safe-haven commodities like gold. I guess this doesn’t come as a surprise. Let’s take a look at Exxon Stock as an example.
Exxon Stock (XOM) was on the rise before the War with Iran officially started but I sense many not only knew it was coming, but did something smart along the way….which was buy stock. Since the beginning of the year, XOM is up over 30%. Should I have paid more attention and bought some back in January…YES…I wish I had. It had hit it’s 52 week high back in March. But Is Exxon still a good buy?
History says yes and current analysts still see it as a moderate buy with many reiterating that this is a great buy and hold long term. XOM constantly raised it’s annual dividends over the past 43 years.
Bottom line is this: just because a stock is near it’s high or looks to be expensive at the time, doesn’t mean it’s not a good long term stock to add to your portfolio. This has nothing do to specifically with XOM (this was just today’s example) but it is a reminder to do your due diligence and pay attention. There is sometimes more to a stock that ONLY it’s price.
Here is a nice article from Charles Schwab to help educate: https://www.schwab.com/learn/story/how-to-pick-stocks-using-fundamental-and-technical-analysis
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