[jyl]

Been working on Japanese stocks recently. Iron Geisha Takaichi wants to build up Japan’s “Self Defense Forces”, build up the domestic defense industry, export weapons throughout Asia, etc. Japan has spent only about 1% of GDP on defense, it is already boosting spend to 2%, her cabinet is talking about 3% or more.

Priorities are long range missiles (cruise, antiship, hypersonic), missile defense, fighter aircraft (Japan uses domestically built F15 and F2, but is buying F35s and developing a 6th gen fighter with the UK and Italy), naval (surface, sub), detection-command-control, cyber. Japan can make quite a lot of that domestically, the government is trying to get the defense industry to expand and invest, and has raised the target profit margin on defense contracts.

I’ve made good money on European defense names, hoping there’s still opportunities in Japan. It’s not that easy to research Asian stocks, but it is interesting.